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Revisiting Purchasing Power Parity for Central Asian Countries Using Threshold Cointegration Tests


Author Info

  • Venus khim-sen Liew

    (Universiti Malaysia Sarawak)

  • Chin-hong Puah

    (Universiti Malaysia Sarawak)

  • Chee-keong Choong

    (Universiti Tunku Abdul Rahman (Perak Campus))

  • Evan Lau

    (Universiti Malaysia Sarawak)


This study finds evidence supportive of the Purchasing Power Parity for Azerbaijan and Kazakhstan using threshold cointegration tests. This finding suggests the existence of an asymmetry relationship between exchange rate and relative prices. The asymmetric relationship may be due to the heavily regulated price and exchange rate systems in these transition economies for the benefits of trade competiveness.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 30 (2010)
Issue (Month): 2 ()
Pages: 1283-1292

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Handle: RePEc:ebl:ecbull:eb-10-00111

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Keywords: Purchasing Power Parity; Asymmetry; Threshold Cointegration; Transition Economies; Central Asia;

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