Long-run validity of Purchasing Power Parity and cointegration analysis for Central Asian countries

Doganlar M.

APPLIED ECONOMICS LETTERS, cilt.13, sa.7, ss.457-461, 2006 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 13 Sayı: 7
  • Basım Tarihi: 2006
  • Doi Numarası: 10.1080/13504850500397478
  • Dergi Adı: APPLIED ECONOMICS LETTERS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.457-461
  • Çukurova Üniversitesi Adresli: Evet

Özet

This study investigates the long-run validity of Purchasing Power Parity for three transition Asian countries, namely Azerbaijan, Kazakhstan and Kyrgyzstan. The results show that the nominal exchange rates, domestic and foreign price series are not cointegrated when four different types of cointegration techniques were applied. Time series properties of the real exchange rates for these countries also show that they are non-stationary. All these results confirm that validity of the Purchasing Power Parity in the long-run can be rejected for these countries.