Author/Authors :
destek, mehmet akif gaziantep üniversitesi - iktisadi ve idari bilimler fakültesi - iktisat bölümü, Turkey , okumuş, ilyas gaziantep üniversitesi - iktisadi ve idari bilimler fakültesi - iktisat bölümü, Turkey
Title Of Article :
Investigation of the Validity of Purchasing Power Parity Hypothesis with Fourier Unit Root Tests: The Case of OECD Countries
Abstract :
It is assumed that purchasing power parity (PPP) hypothesis is an important indicator with regard to financial stability, structural adjustment and economic reform programs of countries. The validity of PPP hypothesis is generally tested with the stationarity of real exchange rates. In this study, the validity of PPP hypothesis is examined with traditional ADF unit root test, KSS unit root test, Fourier ADF and Fourier KSS unit root tests for 27 OECD countries and it is aimed to investigate the stationary of real exchange rate considering with structural changes and nonlinearity form. According to the results of study, real exchange rate is stationary in nonlinear form under structural changes for 14 OECD countries therefore it is supported that PPP hypothesis is exist in these countries.
NaturalLanguageKeyword :
Purchasing Power Parity , Fourier KSS , OECD Countries
JournalTitle :
Gaziantep University Journal Of Social Sciences
