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

  • Korap, Levent
  • Aslan, Özgür

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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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 26273.

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Date of creation: 2010
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Publication status: Published in Applied Economics 27.42(2010): pp. 3559-3564
Handle: RePEc:pra:mprapa:26273
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