EconPapers    
Economics at your fingertips  
 

Purchasing Power Parity in Transition Countries: Panel Stationary Test with Smooth and Sharp Breaks

Mohsen Bahmani-Oskooee (), Tsangyao Chang () and Tsung-Pao Wu ()
Additional contact information
Tsung-Pao Wu: Department of Business Administration, Nan-fang College of Sun Yat-Sen University, Guangzhou 510970, China

International Journal of Financial Studies, 2015, vol. 3, issue 2, 1-9

Abstract: This study examines whether the long-run purchasing power parity (PPP) holds in transition economies (Bulgaria, the Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania and Russia) using monthly data over the 1995–2011 period. We apply a recently introduced panel stationary test, which accounts for sharp breaks and smooth shifts. The results indicate that the PPP holds only in two countries ( i.e. , Lithuania and Poland).

Keywords: purchasing power parity; transition countries; panel stationary test; sharp breaks and smooth breaks; Fourier function (search for similar items in EconPapers)
JEL-codes: G1 G2 G3 F2 F3 F41 F42 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
https://www.mdpi.com/2227-7072/3/2/153/pdf (application/pdf)
https://www.mdpi.com/2227-7072/3/2/153/ (text/html)

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:gam:jijfss:v:3:y:2015:i:2:p:153-161:d:49776

Access Statistics for this article

International Journal of Financial Studies is currently edited by Prof. Dr. Nicholas Apergis

More articles in International Journal of Financial Studies from MDPI, Open Access Journal
Bibliographic data for series maintained by XML Conversion Team ().

 
Page updated 2019-06-05
Handle: RePEc:gam:jijfss:v:3:y:2015:i:2:p:153-161:d:49776