Persistence and Long Run Co-movements Between Gender Equality and Global Prices

Abstract

This paper looks into the continuous trends, steadiness and associations of gender equality and global indices. We examine the level of integration of each group of information from a fractional standpoint for the years 2014-2021. The findings demonstrate that all the individual series are remarkably consistent, with levels of integration close to 1 and no evidence of mean reverting behaviour. Looking at potential cointegrating relationships among the two variables, if we use a classical method based on the two steps approach of Engle and Granger (1987) the order of integration of the estimated errors is very close to 1 showing no evidence of cointegration at all. However, using the more powerful fractional CVAR (FCVAR) approach, the results strongly support the hypothesis of cointegration, finding evidence of long run co-movements between the two series. Investment strategies and policy implications of these results are reported at the end of the manuscript.