Purchasing Power Parity (PPP) of Australian Dollar: Do Test Procedures Matter?
This article aims to reexamine whether Australia’s real exchange rate is mean reverting in the long run by using quarterly trade weighted indices of real exchange rate data for the period of June 1970 to September 2009. We use the state of the art of several more recent econometric tests for this pu...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
The Economics Society of Australia (Queensland) Inc.
2011
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| Online Access: | http://hdl.handle.net/20.500.11937/28092 |
| _version_ | 1848752442659831808 |
|---|---|
| author | Hassan, A. Salim, Ruhul |
| author_facet | Hassan, A. Salim, Ruhul |
| author_sort | Hassan, A. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | This article aims to reexamine whether Australia’s real exchange rate is mean reverting in the long run by using quarterly trade weighted indices of real exchange rate data for the period of June 1970 to September 2009. We use the state of the art of several more recent econometric tests for this purpose. The empirical result shows that the non-stationarity of Australia’s real exchange rate cannot be rejected. Thus, our results support the PPP hypothesis in Australia. Our results are contradictory to those of Cuestas and Regis (2008), but conform to those of Darné and Hoarau (2007 and 2008). |
| first_indexed | 2025-11-14T08:08:41Z |
| format | Journal Article |
| id | curtin-20.500.11937-28092 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:08:41Z |
| publishDate | 2011 |
| publisher | The Economics Society of Australia (Queensland) Inc. |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-280922017-01-30T13:03:02Z Purchasing Power Parity (PPP) of Australian Dollar: Do Test Procedures Matter? Hassan, A. Salim, Ruhul This article aims to reexamine whether Australia’s real exchange rate is mean reverting in the long run by using quarterly trade weighted indices of real exchange rate data for the period of June 1970 to September 2009. We use the state of the art of several more recent econometric tests for this purpose. The empirical result shows that the non-stationarity of Australia’s real exchange rate cannot be rejected. Thus, our results support the PPP hypothesis in Australia. Our results are contradictory to those of Cuestas and Regis (2008), but conform to those of Darné and Hoarau (2007 and 2008). 2011 Journal Article http://hdl.handle.net/20.500.11937/28092 The Economics Society of Australia (Queensland) Inc. fulltext |
| spellingShingle | Hassan, A. Salim, Ruhul Purchasing Power Parity (PPP) of Australian Dollar: Do Test Procedures Matter? |
| title | Purchasing Power Parity (PPP) of Australian Dollar: Do Test Procedures Matter? |
| title_full | Purchasing Power Parity (PPP) of Australian Dollar: Do Test Procedures Matter? |
| title_fullStr | Purchasing Power Parity (PPP) of Australian Dollar: Do Test Procedures Matter? |
| title_full_unstemmed | Purchasing Power Parity (PPP) of Australian Dollar: Do Test Procedures Matter? |
| title_short | Purchasing Power Parity (PPP) of Australian Dollar: Do Test Procedures Matter? |
| title_sort | purchasing power parity (ppp) of australian dollar: do test procedures matter? |
| url | http://hdl.handle.net/20.500.11937/28092 |