This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these messages) This article may be too technical for most readers to understand. Please help improve it to make it understandable to non-experts, without removing the technical details. (February 2015) (Learn how and when to remove this message) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Asymmetric cointegration" – news · newspapers · books · scholar · JSTOR (February 2015) (Learn how and when to remove this message) (Learn how and when to remove this message)

In economics, testing for an asymmetric cointegration relationship among variables implies distinguishing the positive and the negative effects of the error obtained from the cointegration regression.^[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),^{[citation needed]} testing for a potential asymmetric cointegration extends the analysis in further directions to allow for a possibility that other standard cointegration tests may fail to detect an underlying cointegration relationship and therefore, the threshold autoregressive and momentum-threshold cointegration tests are applied to investigate the hypothesis that the cointegration relationship between 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.