The Validity of Purchasing Power Parity Hypothesis in Middle East and Northern Africa Countries
Ferit Kula () and
Alper Aslan ()
Journal for Economic Forecasting, 2010, issue 4, 125-131
This paper re-examines the Purchasing Power Parity (PPP) hypothesis in which the endogenously determined break points are incorporated in thirteen major Middle East and Northern Africa (MENA) countries by using official and black market exchange rates data over 1970-1998. We utilize Lagrange Multiplier (LM) unit root test that endogenously determines structural breaks in level and trend. We find evidence of PPP for all countries using official and/or black market real exchange rates at the 10% level or better.
Keywords: Purchasing Power Parity (PPP); Real exchange rate; Black market; Exchange rates; Unit-root test; Structural break (search for similar items in EconPapers)
JEL-codes: F31 C22 C23 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:rjr:romjef:v::y:2010:i:4:p:125-131
Access Statistics for this article
Journal for Economic Forecasting is currently edited by Lucian Liviu Albu and Corina Saman
More articles in Journal for Economic Forecasting from Institute for Economic Forecasting Contact information at EDIRC.
Bibliographic data for series maintained by Corina Saman ().