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

Levent Korap () and Özgür Aslan

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: Purchasing power parity; Co-integration; Turkish economy (search for similar items in EconPapers)
JEL-codes: C32 F31 F41 (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-ara, nep-cwa and nep-opm
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Citations: View citations in EconPapers (2)

Published in Applied Economics 27.42(2010): pp. 3559-3564

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:26273

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