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Re-examination of the long-run purchasing power parity: further evidence from Turkey

  • H. Levent Korap
  • Ozgur Aslan

In this article, we re-examine the empirical validity of the Purchasing Power Parity (PPP) theory for the Turkish economy. For this purpose, an empirical model is constructed using some contemporaneous estimation techniques such as multivariate co-integration and vector error correction methodology. Our estimation results reveal that the PPP can strongly be supported as a long-run stationary steady-state relationship for the Turkish economy.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 42 (2010)
Issue (Month): 27 ()
Pages: 3559-3564

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Handle: RePEc:taf:applec:v:42:y:2010:i:27:p:3559-3564
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