The Impact of Structural Break(s) on the Validity of Purchasing Power Parity in Turkey: Evidence from Zivot-Andrews and Lagrange Multiplier Unit Root Tests
This study examines the validity of the purchasing power parity (PPP) in Turkey for annual data from 1953 to 2009. While results from both the ADF unit root and the DF-GLS unit root test indicate mixed results, PPP holds for Turkey with the presence of structural breaks which are obtained by Zivot...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2012-05-01
|
| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://econjournals.com/index.php/ijefi/article/view/228 |
| _version_ | 1797911904735199232 |
|---|---|
| author | Hakan Kum |
| author_facet | Hakan Kum |
| author_sort | Hakan Kum |
| collection | DOAJ |
| description |
This study examines the validity of the purchasing power parity (PPP) in Turkey for annual data from 1953 to 2009. While results from both the ADF unit root and the DF-GLS unit root test indicate mixed results, PPP holds for Turkey with the presence of structural breaks which are obtained by Zivot and Andrews and Lagrange Multiplier unit root tests.
Keywords: Purchasing power parity; PPP; Structural Breaks; Turkish Economy.
JEL Classifications: C22; F31
|
| first_indexed | 2024-04-10T11:47:59Z |
| format | Article |
| id | doaj.art-14443878a044431bb0708ebf3f34fae2 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T11:47:59Z |
| publishDate | 2012-05-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-14443878a044431bb0708ebf3f34fae22023-02-15T16:17:16ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382012-05-0123The Impact of Structural Break(s) on the Validity of Purchasing Power Parity in Turkey: Evidence from Zivot-Andrews and Lagrange Multiplier Unit Root TestsHakan Kum This study examines the validity of the purchasing power parity (PPP) in Turkey for annual data from 1953 to 2009. While results from both the ADF unit root and the DF-GLS unit root test indicate mixed results, PPP holds for Turkey with the presence of structural breaks which are obtained by Zivot and Andrews and Lagrange Multiplier unit root tests. Keywords: Purchasing power parity; PPP; Structural Breaks; Turkish Economy. JEL Classifications: C22; F31 https://econjournals.com/index.php/ijefi/article/view/228 |
| spellingShingle | Hakan Kum The Impact of Structural Break(s) on the Validity of Purchasing Power Parity in Turkey: Evidence from Zivot-Andrews and Lagrange Multiplier Unit Root Tests International Journal of Economics and Financial Issues |
| title | The Impact of Structural Break(s) on the Validity of Purchasing Power Parity in Turkey: Evidence from Zivot-Andrews and Lagrange Multiplier Unit Root Tests |
| title_full | The Impact of Structural Break(s) on the Validity of Purchasing Power Parity in Turkey: Evidence from Zivot-Andrews and Lagrange Multiplier Unit Root Tests |
| title_fullStr | The Impact of Structural Break(s) on the Validity of Purchasing Power Parity in Turkey: Evidence from Zivot-Andrews and Lagrange Multiplier Unit Root Tests |
| title_full_unstemmed | The Impact of Structural Break(s) on the Validity of Purchasing Power Parity in Turkey: Evidence from Zivot-Andrews and Lagrange Multiplier Unit Root Tests |
| title_short | The Impact of Structural Break(s) on the Validity of Purchasing Power Parity in Turkey: Evidence from Zivot-Andrews and Lagrange Multiplier Unit Root Tests |
| title_sort | impact of structural break s on the validity of purchasing power parity in turkey evidence from zivot andrews and lagrange multiplier unit root tests |
| url | https://econjournals.com/index.php/ijefi/article/view/228 |
| work_keys_str_mv | AT hakankum theimpactofstructuralbreaksonthevalidityofpurchasingpowerparityinturkeyevidencefromzivotandrewsandlagrangemultiplierunitroottests AT hakankum impactofstructuralbreaksonthevalidityofpurchasingpowerparityinturkeyevidencefromzivotandrewsandlagrangemultiplierunitroottests |