EconPapers    
Economics at your fingertips  
 

Purchasing Power Parity in African Countries: Evidence from the Sequential Panel Selection Method

Mohsen Bahmani-Oskooee (), Alice Kones and Tsangyao Chang ()

Economic Papers, 2014, vol. 33, issue 3, 295-304

Abstract: type="main" xml:id="ecpa12085-abs-0001"> Application of new methodological advances to Africa either does not exist or is always with substantial delay, mostly due to lack of data. In this paper, we use the newly constructed real effective exchange rates of twenty African countries over the current floating rate period of 1971Q1–2012Q4 and test the well-known Purchasing Power Parity (PPP) theory by applying Panel Kapitanios-Shin-Snell unit root test through the sequential panel selection method. This method classifies the whole panel into a group of stationary and non-stationary series and hence identifies how many and which series in the panel are stationary processes. Our empirical results indicate that PPP holds only in three of twenty African countries under study.

Date: 2014
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1111/ecpa.2014.33.issue-3 (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:bla:econpa:v:33:y:2014:i:3:p:295-304

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0812-0439

Access Statistics for this article

Economic Papers is currently edited by Rachel Ong

More articles in Economic Papers from The Economic Society of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2019-06-05
Handle: RePEc:bla:econpa:v:33:y:2014:i:3:p:295-304