Hello, I was trying to check stationarity of GDP data for a period of time. I took log of GDP. There is a clear upward trend of GDP over the time. But surprisingly when I test for stationarity, at 5% and 10% significance level ADF test implies there is no stationarity. Although at 1% level, ADF implies there is stationarity. Now what should I do? Can you please suggest? I have attach the image file of the result of ADF for LGDP.
Firstly, you should use PP and other structural break unit root test. ADF is not enough for some models. Anyway, in your table there isn't any problem. Because there is a unit root in 1% level but there isn't any unit root in 5% and %10. But please analyze the other unit root tests and compare them..
5% level of significance is also mostly accepted in academic researches. So, you no need to worry.
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