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PURCHASING POWER PARITY TESTS IN COINTEGRATED PANELS: EVIDENCE FROM NEWLY INDUSTRIALIZED COUNTRIES

Smruti Ranjan Behera

Journal of Economic Development2019https://doi.org/10.35866/caujed.2019.44.1.004article
ABDC C
Weight
0.34

What the paper says

This paper examines the long-run purchasing power parity (PPP) by testing for unit roots in real exchange rates of 10 newly industrialized countries (NICs) during the period 1980-2013. Alternatively, this paper examines the long-run PPP by evaluating the cointegration between nominal exchange rates and price ratios of the NICs. The Pesaran (2007) unit root test results support the evidence of long-run PPP during the period 1980-1990; however, during the other sub-periods, the results invalidate the long-run PPP. We find that the evidence against the unit root hypothesis is stronger for larger than small samples, for monthly than quarterly data. Moreover, the results suggest the mere evidence of strong PPP and also suggest that the speed at which the real exchange rates restore to equilibrium is relatively slow during the period 1991-2000.

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https://doi.org/https://doi.org/10.35866/caujed.2019.44.1.004

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@article{smruti2019,
  title        = {{PURCHASING POWER PARITY TESTS IN COINTEGRATED PANELS: EVIDENCE FROM NEWLY INDUSTRIALIZED COUNTRIES}},
  author       = {Smruti Ranjan Behera},
  journal      = {Journal of Economic Development},
  year         = {2019},
  doi          = {https://doi.org/https://doi.org/10.35866/caujed.2019.44.1.004},
}

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Evidence weight

0.34

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.