Since 2014
Testing the Purchasing Power Parity Hypothesis: Case of ASEAN Economies
Journal of Contemporary Issues in Economics and Business
View Archive Info| Field | Value | |
| Title |
Testing the Purchasing Power Parity Hypothesis: Case of ASEAN Economies
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| Creator |
Bekő, Jani; University of Maribor, Faculty of Economics and Business, Slovenia
Boršič, Darja; University of Maribor, Faculty of Economics and Business, Slovenia |
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| Subject |
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purchasing power parity, panel unit root tests, ASEAN countries, currency markets |
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| Description |
We examine the purchasing power parity (PPP) hypothesis of 10 members ofASEAN. A battery of panel unit root tests is employed on data series from January1995 to January 2018 in order to search for validity of PPP in the period beforethe Great Recession and in the post-crisis period. All the calculations are basedon four numeraire currencies: Chinese yuan (CNY), Japanese yen (JPY), US dollar(USD), and the euro (EUR). First, following the outcome of the present study forASEAN countries, the PPP holds mostly with respect to CNY rates. Second, forthe post-financial crisis period, our research proves conclusively that the PPPsupposition is predominantly valid between the currencies of ASEAN countriesand EUR rates. The sample of countries in the study is limited to the ASEANgroup of economies. Based on the evaluated parity conditions, the emergenceof global economic crisis brought about significant currency shifts in the ASEAN.The selection and testing of a broader range of numeraire currencies is vital toprovide empirical underpinning for PPP notion.
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| Publisher |
Faculty of Economics and Business
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| Contributor |
—
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| Date |
2018-12-17
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — |
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| Format |
application/pdf
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| Identifier |
http://ng-epf.si/index.php/ngoe/article/view/185
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| Source |
Naše gospodarstvo/Our economy; Vol 64, No 4 (2018); 74-85
2385-8052 0547-3101 |
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| Language |
eng
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| Relation |
http://ng-epf.si/index.php/ngoe/article/view/185/170
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| Rights |
Copyright (c) 2019 Naše gospodarstvo/Our economy
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