Revisiting Purchasing Power Parity of Papua New Guinea

Studies on long-run Purchasing Power Parity (PPP) for Papua New Guinea (PNG), one of the least developed countries in the world, is limited. Unlike the two existing studies, which consistently show no support for PPP, this note uncovers evidence of PPP for Papua New...

Full description

Bibliographic Details
Main Authors: Liew, Venus Khim-Sen, Ling, Tai-Hu, Chia, Ricky Chee-Jiun
Format: Article
Language:English
Published: IPEDR 2011
Subjects:
Online Access:http://ir.unimas.my/id/eprint/9728/
http://ir.unimas.my/id/eprint/9728/1/Revisiting%20Purchasing%20Power%20Parity%20of%20Papua%20New%20Guinea%28abstract%29.pdf
_version_ 1848836629223964672
author Liew, Venus Khim-Sen
Ling, Tai-Hu
Chia, Ricky Chee-Jiun
author_facet Liew, Venus Khim-Sen
Ling, Tai-Hu
Chia, Ricky Chee-Jiun
author_sort Liew, Venus Khim-Sen
building UNIMAS Institutional Repository
collection Online Access
description Studies on long-run Purchasing Power Parity (PPP) for Papua New Guinea (PNG), one of the least developed countries in the world, is limited. Unlike the two existing studies, which consistently show no support for PPP, this note uncovers evidence of PPP for Papua New Guinea (PNG). Results from further analysis indicates that nominal exchange rates and relative prices are nonlinearly interrelated. This PPP in nonlinear dynamic fails to be detected in previous studies that did not include nonlinear analysis. Frictions in international trade could be behind the establishment of the above-mentioned nonlinear relationship.
first_indexed 2025-11-15T06:26:48Z
format Article
id unimas-9728
institution Universiti Malaysia Sarawak
institution_category Local University
language English
last_indexed 2025-11-15T06:26:48Z
publishDate 2011
publisher IPEDR
recordtype eprints
repository_type Digital Repository
spelling unimas-97282015-11-13T07:42:54Z http://ir.unimas.my/id/eprint/9728/ Revisiting Purchasing Power Parity of Papua New Guinea Liew, Venus Khim-Sen Ling, Tai-Hu Chia, Ricky Chee-Jiun HC Economic History and Conditions Studies on long-run Purchasing Power Parity (PPP) for Papua New Guinea (PNG), one of the least developed countries in the world, is limited. Unlike the two existing studies, which consistently show no support for PPP, this note uncovers evidence of PPP for Papua New Guinea (PNG). Results from further analysis indicates that nominal exchange rates and relative prices are nonlinearly interrelated. This PPP in nonlinear dynamic fails to be detected in previous studies that did not include nonlinear analysis. Frictions in international trade could be behind the establishment of the above-mentioned nonlinear relationship. IPEDR 2011 Article PeerReviewed text en http://ir.unimas.my/id/eprint/9728/1/Revisiting%20Purchasing%20Power%20Parity%20of%20Papua%20New%20Guinea%28abstract%29.pdf Liew, Venus Khim-Sen and Ling, Tai-Hu and Chia, Ricky Chee-Jiun (2011) Revisiting Purchasing Power Parity of Papua New Guinea. International Proceedings of Economics Development and Research, 2. ISSN 2010-4626 http://www.ipedr.com/ DOI: 10.7763/IPEDR
spellingShingle HC Economic History and Conditions
Liew, Venus Khim-Sen
Ling, Tai-Hu
Chia, Ricky Chee-Jiun
Revisiting Purchasing Power Parity of Papua New Guinea
title Revisiting Purchasing Power Parity of Papua New Guinea
title_full Revisiting Purchasing Power Parity of Papua New Guinea
title_fullStr Revisiting Purchasing Power Parity of Papua New Guinea
title_full_unstemmed Revisiting Purchasing Power Parity of Papua New Guinea
title_short Revisiting Purchasing Power Parity of Papua New Guinea
title_sort revisiting purchasing power parity of papua new guinea
topic HC Economic History and Conditions
url http://ir.unimas.my/id/eprint/9728/
http://ir.unimas.my/id/eprint/9728/
http://ir.unimas.my/id/eprint/9728/
http://ir.unimas.my/id/eprint/9728/1/Revisiting%20Purchasing%20Power%20Parity%20of%20Papua%20New%20Guinea%28abstract%29.pdf