Purchasing power parity and free trade area.

The aim of this paper is to apply recently developed panel cointegration techniques proposed by Pedroni (1999, 2004) to evaluate the effectiveness of various regional trade agreements by examine the goods market integration between trading partners using purchasing power parity (PPP). The results ob...

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Main Author: Lee, Chin
Format: Article
Language:English
English
Published: The Publisher 2010
Online Access:http://psasir.upm.edu.my/id/eprint/16390/
http://psasir.upm.edu.my/id/eprint/16390/1/Purchasing%20power%20parity%20and%20free%20trade%20area.pdf
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author Lee, Chin
author_facet Lee, Chin
author_sort Lee, Chin
building UPM Institutional Repository
collection Online Access
description The aim of this paper is to apply recently developed panel cointegration techniques proposed by Pedroni (1999, 2004) to evaluate the effectiveness of various regional trade agreements by examine the goods market integration between trading partners using purchasing power parity (PPP). The results obtained from panel cointegration tests strongly support the validity of long-run PPP in almost all cases. Evidence of price convergence suggested that the panel countries of free trade areas (FTAs) are integrated, hence FTAs has fostererd the price convergence.
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last_indexed 2025-11-15T08:07:15Z
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spelling upm-163902015-10-05T04:14:47Z http://psasir.upm.edu.my/id/eprint/16390/ Purchasing power parity and free trade area. Lee, Chin The aim of this paper is to apply recently developed panel cointegration techniques proposed by Pedroni (1999, 2004) to evaluate the effectiveness of various regional trade agreements by examine the goods market integration between trading partners using purchasing power parity (PPP). The results obtained from panel cointegration tests strongly support the validity of long-run PPP in almost all cases. Evidence of price convergence suggested that the panel countries of free trade areas (FTAs) are integrated, hence FTAs has fostererd the price convergence. The Publisher 2010 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/16390/1/Purchasing%20power%20parity%20and%20free%20trade%20area.pdf Lee, Chin (2010) Purchasing power parity and free trade area. The Empirical Economics Letters, 9 (10). pp. 1003-1008. ISSN 1681-8997 English
spellingShingle Lee, Chin
Purchasing power parity and free trade area.
title Purchasing power parity and free trade area.
title_full Purchasing power parity and free trade area.
title_fullStr Purchasing power parity and free trade area.
title_full_unstemmed Purchasing power parity and free trade area.
title_short Purchasing power parity and free trade area.
title_sort purchasing power parity and free trade area.
url http://psasir.upm.edu.my/id/eprint/16390/
http://psasir.upm.edu.my/id/eprint/16390/1/Purchasing%20power%20parity%20and%20free%20trade%20area.pdf