Testing the validity of quasi PPP hypothesis: Evidence from a recent panel unit root test with structural breaks

Bulent Guloglu*, Serdar Ispira, Deniz Okat

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

In this article we test the validity of quasi Purchasing Power Parity (PPP) hypothesis for 18 Turkish real exchange rate series using a panel unit root test that allows for structural breaks in the level and the trend. Test results based on a long span of data find evidence of the validity of quasi PPP hypothesis for almost all the exchange rate series under study and for the whole of panel as well.

Original languageEnglish
Pages (from-to)1817-1822
Number of pages6
JournalApplied Economics Letters
Volume18
Issue number18
DOIs
Publication statusPublished - Dec 2011
Externally publishedYes

Keywords

  • purchasing power parity
  • real exchange rate
  • structural breaks

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