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Purchasing Power Parity and Its Validity In The South Asian Countries

Author

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  • Purna Chandra Parida

    (Institute for social and Economic Change)

  • Maathai K Mathiyazhagan
  • G Nancharaiah

Abstract

This paper examines the validity of Purchasing Power Parity (PPP) in the context of South Asian countries namely India, Sri Lanka and Pakistan. The study verifies the PPP hypothesis that it is more pronounced either in developed countries as a group or developing countries but not between developed and developing countries. The study uses the Cointegration technique and concludes that PPP is quite feasible among the South Asian countries with India as a base country.

Suggested Citation

  • Purna Chandra Parida & Maathai K Mathiyazhagan & G Nancharaiah, 2001. "Purchasing Power Parity and Its Validity In The South Asian Countries," Working Papers 100, Institute for Social and Economic Change, Bangalore.
    • Handle: RePEc:sch:wpaper:100
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    File URL: http://www.isec.ac.in/Productivity_differentials_and_the_real_exchange_rate.pdf
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    Cited by:

    1. Hariom ARORA, 2021. "What explains the real exchange rate movement for the BRICS nations? With a separate analysis for Indian economy," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(627), S), pages 207-232, Summer.

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    Keywords

    Purchasing Power Parity; Asia;

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