Nonlinear Adjustment towards Purchasing Power Parity in ASEAN Exchange Rates
The major finding of this study is that the long run purchasing power parity (PPP) deviations of the major ASEAN exchange rates exhibit nonlinear adjustment which may be characterised by the Smooth Transition Autoregressive (STAR) model. This finding warrants us that policy decision based on inappro...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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IUP Publications
2004
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| Online Access: | http://ir.unimas.my/id/eprint/18648/ http://ir.unimas.my/id/eprint/18648/7/Nonlinear%20Adjustment%20Purchasing%20Power%20Parity%20Deviations%20%28abstract%29.pdf |
| _version_ | 1848838557756555264 |
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| author | Liew, Venus Khim-Sen Ahmad Zubaidi, Baharumshah Lau, Evan |
| author_facet | Liew, Venus Khim-Sen Ahmad Zubaidi, Baharumshah Lau, Evan |
| author_sort | Liew, Venus Khim-Sen |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | The major finding of this study is that the long run purchasing power parity (PPP) deviations of the major ASEAN exchange rates exhibit nonlinear adjustment which may be characterised by the Smooth Transition Autoregressive (STAR) model. This finding warrants us that policy decision based on inappropriate linear studies may not be effectiveness. Besides, exchange rates with deviations with higher speed of adjustment are found to be more pruned to currency crisis. |
| first_indexed | 2025-11-15T06:57:27Z |
| format | Article |
| id | unimas-18648 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:57:27Z |
| publishDate | 2004 |
| publisher | IUP Publications |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-186482017-11-20T08:00:37Z http://ir.unimas.my/id/eprint/18648/ Nonlinear Adjustment towards Purchasing Power Parity in ASEAN Exchange Rates Liew, Venus Khim-Sen Ahmad Zubaidi, Baharumshah Lau, Evan HB Economic Theory The major finding of this study is that the long run purchasing power parity (PPP) deviations of the major ASEAN exchange rates exhibit nonlinear adjustment which may be characterised by the Smooth Transition Autoregressive (STAR) model. This finding warrants us that policy decision based on inappropriate linear studies may not be effectiveness. Besides, exchange rates with deviations with higher speed of adjustment are found to be more pruned to currency crisis. IUP Publications 2004-01 Article PeerReviewed text en http://ir.unimas.my/id/eprint/18648/7/Nonlinear%20Adjustment%20Purchasing%20Power%20Parity%20Deviations%20%28abstract%29.pdf Liew, Venus Khim-Sen and Ahmad Zubaidi, Baharumshah and Lau, Evan (2004) Nonlinear Adjustment towards Purchasing Power Parity in ASEAN Exchange Rates. The IUP Journal of Applied Economics, 3 (6). pp. 1-27. ISSN 0972-6861 https://www.researchgate.net/publication/5105006 |
| spellingShingle | HB Economic Theory Liew, Venus Khim-Sen Ahmad Zubaidi, Baharumshah Lau, Evan Nonlinear Adjustment towards Purchasing Power Parity in ASEAN Exchange Rates |
| title | Nonlinear Adjustment towards Purchasing Power Parity in ASEAN Exchange Rates |
| title_full | Nonlinear Adjustment towards Purchasing Power Parity in ASEAN Exchange Rates |
| title_fullStr | Nonlinear Adjustment towards Purchasing Power Parity in ASEAN Exchange Rates |
| title_full_unstemmed | Nonlinear Adjustment towards Purchasing Power Parity in ASEAN Exchange Rates |
| title_short | Nonlinear Adjustment towards Purchasing Power Parity in ASEAN Exchange Rates |
| title_sort | nonlinear adjustment towards purchasing power parity in asean exchange rates |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/18648/ http://ir.unimas.my/id/eprint/18648/ http://ir.unimas.my/id/eprint/18648/7/Nonlinear%20Adjustment%20Purchasing%20Power%20Parity%20Deviations%20%28abstract%29.pdf |