Evidence for purchasing power parity under the current float : economic applications using panel data unit root test.

• Main Authors: Lim, Siew Ming., Ng, Yi Ping.
• Other Authors: Alba, Joseph Dennis
• Format: Final Year Project
• Published: 2008
• Subjects: DRNTU::Business::Finance::Money
• Online Access: http://hdl.handle.net/10356/9066
• Institution: Nanyang Technological University

This paper contributes to the resolution of the debate on PPP. It revisits long run equilibrium PPP under the current float for the period 1973-1998, using panel data unit root test analysis. We examine the existence of PPP with respect to openness. Evidence has shown that PPP holds in the long run...