The purchasing power parity hypothesis in Turkey: evidence from nonlinear STAR error correction models

Ozdemir Z. A.

APPLIED ECONOMICS LETTERS, cilt.15, sa.4, ss.307-311, 2008 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 15 Sayı: 4
  • Basım Tarihi: 2008
  • Doi Numarası: 10.1080/13504850500447315
  • Dergi Adı: APPLIED ECONOMICS LETTERS
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.307-311
  • Gazi Üniversitesi Adresli: Hayır

Özet

This study re-examines the validity of long-run purchasing power parity (PPP) hypothesis for Turkey using nonlinear cointegration technique. The finding of this article provides the evidence that the long run PPP hypothesis is valid by using nonlinear cointegration technique. This finding argues the validity of the long-run PPP hypothesis in bilateral Turkish real exchange rates with the USA, which is also supported by Sarno (2000) and Erlat (2004).