The remainder of this paper is organized as follows:Section 2 specifies the assumptions and outlines the panel unit root test procedure. Readers who are interested mainly in empirical application can skip the rest of the paper. Section 3 analyzes the limiting distributions of the panel test statistics. Section 4 briefly discusses the Monte Carlo simulations. Concluding remarks regarding the limitations of the proposed panel unit root test are offered in Section 5. All proofs are deferred to the appendix.