Purchasing power parity in Central and Eastern European countries.

This paper investigates the validity of the purchasing power parity (PPP) hypothesis for 13 Central and Eastern European countries (CEEC) in transition. The results based on the seemingly unrelated regression ADF (SURADF) method reveal that the PPP relationship holds in 7(6) out of the 13 countries...

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Main Authors: Baharumshah, Ahmad Zubaidi, Borsic, Darja
Format: Article
Language:English
English
Published: Economics Bulletin 2008
Online Access:http://psasir.upm.edu.my/id/eprint/16392/
http://psasir.upm.edu.my/id/eprint/16392/1/Purchasing%20power%20parity%20in%20Central%20and%20Eastern%20European%20countries.pdf
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author Baharumshah, Ahmad Zubaidi
Borsic, Darja
author_facet Baharumshah, Ahmad Zubaidi
Borsic, Darja
author_sort Baharumshah, Ahmad Zubaidi
building UPM Institutional Repository
collection Online Access
description This paper investigates the validity of the purchasing power parity (PPP) hypothesis for 13 Central and Eastern European countries (CEEC) in transition. The results based on the seemingly unrelated regression ADF (SURADF) method reveal that the PPP relationship holds in 7(6) out of the 13 countries when the real exchange rate is based on US dollar (euro). Our empirical findings appear to support a long-run PPP in some of the transition countries that appears insensitive to the base country.
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publishDate 2008
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spelling upm-163922015-09-04T08:04:07Z http://psasir.upm.edu.my/id/eprint/16392/ Purchasing power parity in Central and Eastern European countries. Baharumshah, Ahmad Zubaidi Borsic, Darja This paper investigates the validity of the purchasing power parity (PPP) hypothesis for 13 Central and Eastern European countries (CEEC) in transition. The results based on the seemingly unrelated regression ADF (SURADF) method reveal that the PPP relationship holds in 7(6) out of the 13 countries when the real exchange rate is based on US dollar (euro). Our empirical findings appear to support a long-run PPP in some of the transition countries that appears insensitive to the base country. Economics Bulletin 2008 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/16392/1/Purchasing%20power%20parity%20in%20Central%20and%20Eastern%20European%20countries.pdf Baharumshah, Ahmad Zubaidi and Borsic, Darja (2008) Purchasing power parity in Central and Eastern European countries. Economics Bulletin, 6 (32). pp. 1-8. ISSN 1545-2921 English
spellingShingle Baharumshah, Ahmad Zubaidi
Borsic, Darja
Purchasing power parity in Central and Eastern European countries.
title Purchasing power parity in Central and Eastern European countries.
title_full Purchasing power parity in Central and Eastern European countries.
title_fullStr Purchasing power parity in Central and Eastern European countries.
title_full_unstemmed Purchasing power parity in Central and Eastern European countries.
title_short Purchasing power parity in Central and Eastern European countries.
title_sort purchasing power parity in central and eastern european countries.
url http://psasir.upm.edu.my/id/eprint/16392/
http://psasir.upm.edu.my/id/eprint/16392/1/Purchasing%20power%20parity%20in%20Central%20and%20Eastern%20European%20countries.pdf