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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Official URL: http://dx.doi.org/10.1080/00036840902762704

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
ID Code:2048
Deposited By:IR Admin
Deposited On:07 Mar 2011 08:32
Last Modified:17 Feb 2015 17:11

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