Purchasing power parity theory in three East Asian economies: New evidence
AbstractTo an otherwise extensive literature with yet mixed findings on the long run Purchasing Power Parity (PPP) theory, this paper extends the evidence against the PPP hypothesis in three East Asian economies namely Indonesia, Malaysia, and Thailand based on quarterly data spanning forty years (1968:Q1-2008:Q1). The testing of PPP hypothesis in this study employs two methods namely Engle-Granger procedure and Johansen multivariate cointegration method.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42159.
Date of creation: 14 Aug 2012
Date of revision:
Purchasing power parity; East Asian countries; Johansen multivariate cointegration test;
Find related papers by JEL classification:
- E29 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Other
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-03 (All new papers)
- NEP-OPM-2012-11-03 (Open Economy Macroeconomic)
- NEP-SEA-2012-11-03 (South East Asia)
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