Does PPP hold between Asian and Japanese economies? Evidence using panel unit root and panel cointegration

Authors
Azali, M Habibullah, MS Baharumshah, AZ
Citation
M. Azali et al., Does PPP hold between Asian and Japanese economies? Evidence using panel unit root and panel cointegration, JPN WORLD E, 13(1), 2001, pp. 35-50
Citations number
21
Categorie Soggetti
Economics
Journal title
JAPAN AND THE WORLD ECONOMY
ISSN journal
09221425 → ACNP
Volume
13
Issue
1
Year of publication
2001
Pages
35 - 50
Database
ISI
SICI code
0922-1425(200101)13:1<35:DPHBAA>2.0.ZU;2-P
Abstract
This paper presents an empirical analysis of panel unit root and panel coin tegration tests of long-run absolute purchasing power parity (PPP) fur seve n Asian developing economies (ADE). The evidence shows that the panel param etric and non-parametric tests either with a trend term or without a trend term support the hypothesis of cointegration between the bilateral exchange rates and relative prices against the selected foreign country - Japan. (C ) 2001 Elsevier Science B.V. All rights reserved.