Are bilateral real exchange rates stationary? Evidence from Lagrange multiplier unit root tests for India

Paresh Narayan ()

Applied Economics, 2006, vol. 38, issue 1, 63-70

Abstract: The paper examines the stationarity of India's real exchange rate vis-a-vis 16 of its major trading partner countries for the period 1960-2000. Application of the conventional ADF unit root test, the Lagrange multiplier (LM) unit root test with one structural break, and the LM unit root test with two structural breaks provides evidence that India's exchange rate vis-a-vis 15 out of 16 countries is stationary, implying support for purchasing power parity.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00036840500365983 (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:taf:applec:v:38:y:2006:i:1:p:63-70

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036840500365983

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().