The law of one price for transitional Ukraine

Five commodity prices in Kiev, Ukraine, are examined for their movements relative to US counterparts during Ukraineʹs early transition period of 1991¯1992. Panel unit root tests are applied to the resulting commodity real exchange rates. Although the law of one price did not hold during the period, the commodity real exchange rates appear to have possessed deterministic trends that were in the direction of closing the initial considerable price gap.