Purchasing power parity in Asian economies : further evidence from rank tests for cointegration

Liew, Venus Khim Sen and Lee, Hock Ann and Lim, Kian Ping (2009) Purchasing power parity in Asian economies : further evidence from rank tests for cointegration. Applied Economics Letters, 16 (1). pp. 51-54. ISSN 1350-4851

[img]
Preview
Text
Purchasing_power_parity_in_Asian_economies.pdf

Download (43kB) | Preview

Abstract

The finding of nonlinear cointegration between Asian exchange rates with the corresponding relative prices and aggregate price levels based on Breitung's (2001) nonparametric rank tests reinforces previous validations of purchasing power parity (PPP) by the parametric testing procedures. Hence, the long-run Asian exchange rates are in equilibrium with the relevant fundamentals as suggested by the PPP hypothesis.

Item Type: Article
Uncontrolled Keywords: Real Exchange-rate, Business, Economics, Asian economies
Subjects: H Social Sciences > HB Economic theory. Demography > HB1-3840 Economic theory. Demography > HB801-843 Consumption. Demand
Divisions: SCHOOL > Labuan School of International Business and Finance
Depositing User: ADMIN ADMIN
Date Deposited: 16 Aug 2011 14:39
Last Modified: 19 Oct 2017 10:34
URI: http://eprints.ums.edu.my/id/eprint/1343

Actions (login required)

View Item View Item