Testing the purchasing power parity in China

Olivier Darné and Hoarau, Jean-François

No 2006-18, EconomiX Working Papers from University of Paris West - Nanterre la Défense, EconomiX

Abstract: In this paper we examine whether purchasing power parity holds in the long run in China for the period 1970:1 to 2006:5 from an alternative method relative to the previous studies. We underlined the effects of large, but infrequent shocks due to changes of Chinese exchange policy (undertaken since the China's foreign exchange reform) on the real exchange rate, using outlier methodology. We also show that there is no endency to the purchasing power parity in China to hold in the long run during this period.

Keywords: Purchasing power parity; real exchange rate; unit root tests; outliers; renminbi. (search for similar items in EconPapers)
JEL-codes: C22 F31 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cna, nep-his, nep-ifn, nep-sea and nep-tra
Date: Written
View list of references

Downloads: (external link)
http://economix.u-paris10.fr/pdf/dt/2006/WP_EcoX_2006-18.pdf (application/pdf)

Related works:
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: http://EconPapers.repec.org/RePEc:drm:wpaper:2006-18

Access Statistics for this paper

More papers in EconomiX Working Papers from University of Paris West - Nanterre la Défense, EconomiX
Contact information at EDIRC.
Series data maintained by Bruno Chaves ().