This paper proposes two new panel unit root tests based on Zaykin et al. (2002)’s truncated product method. The first one assumes constant correlation between p-values and the second one uses sieve bootstrap to allow for general forms of cross-section dependence in the panel units. Monte Carlo...

This paper proposes a simple panel unit root test based on Zaykin et al.’s (2002) truncated product method. The test is powerful in cases where there are only a few large p-values, and is robust to a certain degree of cross-section dependence. Monte Carlo evidence shows good size and power...