scholarly journals TESTING THE VALIDITY OF PURCHASING POWER PARITY FOR BRICS COUNTRIES USING NON-LINEAR UNIT ROOT TEST

2015 ◽  
Vol 7 (12) ◽  
Author(s):  
Ali Eren Alper
Keyword(s):  
Purchasing Power Parity ◽  
Unit Root ◽  
Unit Root Test ◽  
Purchasing Power ◽  
Power Parity ◽  
Brics Countries ◽  
Non Linear

scholarly journals Purchasing Power Parity in Commonwealth of Independent States

2014 ◽  
Author(s):  
Gülçin Güreşçi Pehlivan ◽  
Esra Ballı ◽  
Muammer Tekeoğlu
Keyword(s):  
Time Series ◽  
Panel Data ◽  
Cross Section ◽  
Purchasing Power Parity ◽  
Unit Root ◽  
Unit Root Test ◽  
Purchasing Power ◽  
Power Parity ◽  
Panel Unit Root ◽  
Independent States

The Purchasing Power Parity suggests that differences in relative prices in two countries move together with nominal exchange rates in the long run. This study examines the validity of PPP as transition economies for Commonwealth of Independent States (CIS). Purchasing Power Parity holds only when the real exchange rate is stationary in the equation. To test the stationary, we used both time series and panel data analysis. Testing unit root both with time series and panel data in this study, provides us double check of the results. We also test the cross sectional dependence to choose the appropriate panel unit root test. Our test statistics indicate that there is cross section dependence between countries. Hence, one needs to take into consideration the cross section dependence while undertaking unit root tests. Otherwise, the results would be biased. ADF and KPPS indicate that PPP cannot be accepted for the countries except for Russia. According to the panel unit root test results indicate that PPP does not hold for Armenia, Belarus, Georgia, Kazakhstan and Kyrgyzstan except for Russia.

Purchasing power parity in Mainland China and Taiwan: an empirical note based on threshold unit root test

2011 ◽  
Vol 18 (18) ◽  
pp. 1807-1812 ◽  
Author(s):  
Tsung-Hsien Chen ◽  
Tsangyao Chang ◽  
Yi-Chun Zhang ◽  
Chia-Hao Lee
Keyword(s):  
Purchasing Power Parity ◽  
Unit Root ◽  
Mainland China ◽  
Unit Root Test ◽  
Purchasing Power ◽  
Power Parity ◽  
Empirical Note
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