Purchasing power parity theory in three East Asian economies: New evidence

Mahyudin Ahmad and Nur Fakhzan Marwan

MPRA Paper from University Library of Munich, Germany

Abstract: To an otherwise extensive literature with yet mixed findings on the long run Purchasing Power Parity (PPP) theory, this paper extends the evidence against the PPP hypothesis in three East Asian economies namely Indonesia, Malaysia, and Thailand based on quarterly data spanning forty years (1968:Q1-2008:Q1). The testing of PPP hypothesis in this study employs two methods namely Engle-Granger procedure and Johansen multivariate cointegration method.

Keywords: Purchasing power parity; East Asian countries; Johansen multivariate cointegration test (search for similar items in EconPapers)
JEL-codes: C22 E29 (search for similar items in EconPapers)
Date: 2012-08-14
New Economics Papers: this item is included in nep-opm and nep-sea
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:42159

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