Phillips curve in a small open economy: A time series exploration of North Cyprus

Faridul Islam (), Muhammad Shahbaz and Shahbaz Shabbir ()

MPRA Paper from University Library of Munich, Germany

Abstract: The paper explores the existence and the stability of Phillips curve for North Cyprus, a small developing economy, using time series data. ADF unit root test is employed to check for stationarity. ARDL and DOLS approaches to cointegration have been used to explore the long run relation and ECM to understand short run dynamics. The predictive properties DOLS are better than those of the conventional methods. The estimates point to the existence of Phillips curve both in the long and the short run. CUSUM and CUSUMsq tests confirm a stable relation.

Keywords: Inflation; Unemployment; ADF; Cointegration; DOLS (search for similar items in EconPapers)
JEL-codes: C22 E24 E31 (search for similar items in EconPapers)
Date: 2011-01-19
New Economics Papers: this item is included in nep-cwa and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/28397/1/MPRA_paper_28397.pdf original version (application/pdf)

Related works:
Journal Article: Phillips Curve in a Small Open Economy: A Time Series Exploration of North Cyprus (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:28397

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().