The main purpose of this paper is to examine the validity of purchasing power parity between a group of countries based on macroeconomics variables namely, high/low income and the highest GDP per capita over the period 2005Q1-2015Q4. Four types of panel unit root methods, namely Levin, Lin and Chu (LLC), ADF-Fisher, PP-Fisher and Im, Pesaran and Shin (IPS) had been used to test the unit root in real exchange rates. The results of common unit root test LLC found evidence in favor of the validity of PPP. But the results of Im, Pesaran and Shin, ADF-Fisher and PP-Fisher unit root tests results failed to find evidence in the favor of validity of PPP for high/low income and GDP. Hence, this study fails to find evidence for both characteristics. Therefore, the debate of PPP remains elusive and the puzzle will continue.
JEL Codes: F31, O57
Total Reviews: 0
Price:$9.99
March 2020 (International Review of Business Research Papers) → Ethical Factors Affecting the Financial Market: A Study from Bangladesh Perspectives
September 2016 (Journal of Modern Science and Technology) → Cost Effective Decisions on Service Rate at a Customer Care Centre with Multi-Server Queuing Model
September 2017 (International Review of Business Research Papers) → Remittance, Exchange Rate and Dutch Disease: The Case of Bangladesh
$9.99
July 2015 (Journal of Business and Policy Research) → Perceived Importance of Defensive Marketing Strategies Before and After Competitor Entry: Does Nationality Matter?
$9.99
March 2015 (World Journal of Management) → Characteristics of Community Entrepreneurs in Chiangmai, Thailand
$9.99
Reviews
There are no reviews yet.