Resumen de Economic development and structural breaks: an application of the lee and strazicich (2003) lagrange multiplier test to the libyan economy, 1970-2007
The aim of the paper is to examine the unit root properties while identifying the timing of the major structural breaks in Libyan economy using annual time series data from 1970 to 2007. The ADF tests results are not able to reject the null of unit root for all of the 14 macroeconomic variables. On the other hand, the results of Lee and Strazicich (2003) test with two endogenously determined structural breaks indicate the non-rejection of unit root null of only eight variables. The structural break dates correspond to the major events in the Libyan economy such as oil shocks in late 70s and early 80s, changing of economic regime in 1977, the UN sanctions in the early 1990s, and lifting of the UN sanctions and USA trade embargo in 2003 and 2004
