@article{ART001096755,
author={Nusair, Sahah A.},
title={Testing for PPP in Developing Countries Using Confirmatory Analysis And Different Base Countries: An Application To Asian Countries},
journal={International Economic Journal},
issn={1016-8737},
year={2004},
volume={18},
number={4},
pages={469-491}
}

TY - JOUR
AU - Nusair, Sahah A.
TI - Testing for PPP in Developing Countries Using Confirmatory Analysis And Different Base Countries: An Application To Asian Countries
T2 - International Economic Journal
JO - International Economic Journal
PY - 2004
VL - 18
IS - 4
PB - 한국국제경제학회
SP - 469
EP - 491
SN - 1016-8737
AB - Previous studies on PPP have tested either the null hypothesis of non-stationary or the null of stationary real exchange rate and used the U.S. as the base country and focused on industrialized countries. It has been argued that testing either null is insufficient to confirm the presence of PPP. It has also been noticed that the results are sensitive to the choices of the base country; for instance, the U.S. versus Germany. In contrast to previous studies, this paper uses different unit root tests, confirmatory analysis, and different base countries to test PPP for a sample of developing countries in Asia during the current float. Overall, the results do not seem to be sensitive to the choice of the base country, and joint rejections are not present but joint non-rejections are far more common. Using Perron’s test which allows for a one-time break in the series, the results indicate evidence of stationarity for Indonesia, Korea, Malaysia, and Thailand when the U.S. is the base country. When Japan is the base country, evidence of stationarity is detected for only Indonesia.
KW - PPP; the ADF test; the PP test; the ADF-GLS test; the KPSS test; structural break
DO -
UR -
ER -

Nusair, Sahah A.. 2004, "Testing for PPP in Developing Countries Using Confirmatory Analysis And Different Base Countries: An Application To Asian Countries", International Economic Journal, vol.18, no.4 pp.469-491.

Nusair, Sahah A. "Testing for PPP in Developing Countries Using Confirmatory Analysis And Different Base Countries: An Application To Asian Countries" International Economic Journal 18.4 pp.469-491 (2004) : 469.

Nusair, Sahah A.. Testing for PPP in Developing Countries Using Confirmatory Analysis And Different Base Countries: An Application To Asian Countries. 2004; 18(4), 469-491.

Nusair, Sahah A.. "Testing for PPP in Developing Countries Using Confirmatory Analysis And Different Base Countries: An Application To Asian Countries" International Economic Journal 18, no.4 (2004) : 469-491.

Nusair, Sahah A.. Testing for PPP in Developing Countries Using Confirmatory Analysis And Different Base Countries: An Application To Asian Countries. International Economic Journal, 18(4), 469-491.

Nusair, Sahah A.. Testing for PPP in Developing Countries Using Confirmatory Analysis And Different Base Countries: An Application To Asian Countries. International Economic Journal. 2004; 18(4) 469-491.

Nusair, Sahah A.. Testing for PPP in Developing Countries Using Confirmatory Analysis And Different Base Countries: An Application To Asian Countries. 2004; 18(4), 469-491.

Nusair, Sahah A.. "Testing for PPP in Developing Countries Using Confirmatory Analysis And Different Base Countries: An Application To Asian Countries" International Economic Journal 18, no.4 (2004) : 469-491.