In economics, testing for an asymmetric cointegration relationship among variables implies distinguishing the positive and the negative effects of the error obtained from the cointegrationregression.[1] In order to do that, economists usually use the asymmetric cointegration framework proposed by Enders and Siklos in 2001.[2] Asymmetric cointegration comes from the analysis of multivariate combinations arising from the decomposition of the series into positive and negative values of its cumulative sums; see Lardic and Mignon (2008, p. 484).[citation needed]
According to Cook (2006),[
banking sector
development indicators and remittances is of an asymmetric form which splits the speed of adjustments into two parts based on the direction of the equilibrium error.
References
^Al-Assaf G. (2014), Testing for Asymmetric Cointegration Relationship between Banking Sector Development and Trade Openness: Evidence from Jordan, Dirasat: Administrative Sciences, Vol 41, No 2, 497–507 Al-Assaf 2014Archived 2015-02-11 at the Wayback Machine
^Enders, W. and Siklos, P. L. (2001). "Cointegration and threshold adjustment." Journal of Business and Economic Statistics 19(2): 166–176.
