Phillips Curve in a Small Open Economy: A Time Series Exploration of North Cyprus

Muhammad Shahbaz, Faridul Islam () and Muhammad Shahbaz Shabbir
Additional contact information
Muhammad Shahbaz: Research Fellow, Centre for Research, Department of Management Sciences, COMSATS Institute of Information Technology, Lahore , Pakistan
Muhammad Shahbaz Shabbir: Head, Centre for Research, Department of Management Sciences, COMSATS Institute of Information Technology, Lahore, Pakistan
Authors registered in the RePEc Author Service: Muhammad Shahbaz

Bangladesh Development Studies, 2012, vol. 35, issue 4, 113-130

Abstract: The paper explores the existence and the stability of the Phillips curve using time series data for North Cyprus, a small developing economy. ADF unit root test is employed to check for stationarity. ARDL and DOLS approaches to cointegration are 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 the 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: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://bids.org.bd/uploads/publication/BDS/35/35-4 ... 20in%20a%20Small.pdf Full text (application/pdf)

Related works:
Working Paper: Phillips curve in a small open economy: A time series exploration of North Cyprus (2011)
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:ris:badest:0548

Access Statistics for this article

Bangladesh Development Studies is currently edited by Dr. Binayak Sen

More articles in Bangladesh Development Studies from Bangladesh Institute of Development Studies (BIDS) E-17, Agargaon, Sher-E-Bangla Nagar, Dhaka 1207. Contact information at EDIRC.
Bibliographic data for series maintained by Meftaur Rahman, Cheif Publication Officer, BIDS ().