Advanced Search
MyIDEAS: Login to save this article or follow this journal

La parité des pouvoirs d'achat pour l'économie chinoise : une nouvelle analyse par les tests de racine unitaire


Author Info

  • Olivier Darné
  • Jean-François Hoarau


In this paper we re-examine whether purchasing power parity holds in the long run in China from a two-steps procedure correcting outliers and testing unit roots. Thus, the efficient unit root tests developed by Elliott, Rothenberg and Stock (1996) and Ng and Perron (2001) are applied on the Renminbi bilateral (to the US dollar) real exchange rate, corrected from outliers, over the period 1970 to 2006 (in monthly frequency). We underlined the effects of large, but infrequent shocks due to changes of Chinese exchange policy undertaken since the China?s foreign exchange reform on the real exchange rate, in particular several devaluations between 1984-1994. We also show that there is no tendency to the purchasing power parity in China to hold in the long run during this period. JEL classification: C22, F31.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: restricted

File URL:
Download Restriction: restricted

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by De Boeck Université in its journal Recherches économiques de Louvain.

Volume (Year): 74 (2008)
Issue (Month): 2 ()
Pages: 219-236

as in new window
Handle: RePEc:cai:reldbu:rel_742_0219

Contact details of provider:
Web page:

Related research

Keywords: purchasing power parity; real exchange rate; Renminbi; unit root tests; outliers;

Other versions of this item:

Find related papers by JEL classification:


No references listed on IDEAS
You can help add them by filling out this form.



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:cai:reldbu:rel_742_0219. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.