Long-run validity of purchasing power parity and rank tests for cointegration for Central Asian countries

Liew, Kang Chiang and Chia, Ricky Chee Jiun and Ling, Tai Hu (2010) Long-run validity of purchasing power parity and rank tests for cointegration for Central Asian countries. Applied Economics Letters, 17 (11). pp. 1073-1077. ISSN 1350-4851

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Abstract

This study finds that Purchasing Power Parity (PPP) holds in the long-run for Azerbaijan, Kazakhstan and Kyrgyzstan, based on Breitung's (2001) rank tests for cointegration. Results from further analysis indicates that nominal exchange rates and relative prices are nonlinearly interrelated. Trade barriers, transportation costs and government intervention in the pricing system in these countries may have resulted in the establishment of the above-mentioned nonlinear relationship. © 2010 Taylor & Francis.

Item Type: Article
Uncontrolled Keywords: Cointegration analysis, Exchange rate, Pricing policy, Purchasing power parity, Ranking, 0Azerbaijan, Kazakhstan, Kyrgyzstan
Subjects: ?? HB801-843 ??
Divisions: SCHOOL > Labuan School of International Business and Finance
Depositing User: Unnamed user with email storage.bpmlib@ums.edu.my
Date Deposited: 07 Mar 2011 00:32
Last Modified: 20 Oct 2017 06:59
URI: http://eprints.ums.edu.my/id/eprint/2048

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