Purchasing power parity in GIIPS countries: evidence from unit root tests with breaks and non-linearity
Purpose – This paper aims to test purchasing power parity (PPP) hypothesis for Greece, Italy, Ireland, Portugal and Spain, which are known as the GIIPS countries. Design/methodology/approach – The authors conduct a comprehensive analysis by using unit root approaches without and with structural brea...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2022-10-01
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| Series: | Applied Economic Analysis |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/AEA-10-2020-0146/full/pdf |
| _version_ | 1797792218899021824 |
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| author | Saban Nazlioglu Mehmet Altuntas Emre Kilic Ilhan Kucukkkaplan |
| author_facet | Saban Nazlioglu Mehmet Altuntas Emre Kilic Ilhan Kucukkkaplan |
| author_sort | Saban Nazlioglu |
| collection | DOAJ |
| description | Purpose – This paper aims to test purchasing power parity (PPP) hypothesis for Greece, Italy, Ireland, Portugal and Spain, which are known as the GIIPS countries. Design/methodology/approach – The authors conduct a comprehensive analysis by using unit root approaches without and with structural breaks and non-linearity. Findings – The PPP is valid for the GIIPS countries. Considering structural breaks in non-linear framework plays a crucial role. Originality/value – There is no empirical study testing PPP hypothesis by focusing on the GIIPS countries. This study further takes into account for structural breaks and non-linearity in the real exchange rates of these countries. |
| first_indexed | 2024-03-13T02:30:02Z |
| format | Article |
| id | doaj.art-49aff039ed4646c5af20ea5ed7563b6c |
| institution | Directory Open Access Journal |
| issn | 2632-7627 |
| language | English |
| last_indexed | 2024-03-13T02:30:02Z |
| publishDate | 2022-10-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Applied Economic Analysis |
| spelling | doaj.art-49aff039ed4646c5af20ea5ed7563b6c2023-06-29T19:07:53ZengEmerald PublishingApplied Economic Analysis2632-76272022-10-01309017619510.1108/AEA-10-2020-0146Purchasing power parity in GIIPS countries: evidence from unit root tests with breaks and non-linearitySaban Nazlioglu0Mehmet Altuntas1Emre Kilic2Ilhan Kucukkkaplan3Department of International Trade and Finance, Pamukkale University, Denizli, Turkey and Department of Economics and Finance, Nisantasi University, Istanbul, TurkeyDepartment of Logistic, Nisantasi University, Istanbul, TurkeyDepartment of Capital Markets and Portfolio Management, Nisantasi University, Istanbul, TurkeyDepartment of International Trade and Finance, Pamukkale University, Denizli, TurkeyPurpose – This paper aims to test purchasing power parity (PPP) hypothesis for Greece, Italy, Ireland, Portugal and Spain, which are known as the GIIPS countries. Design/methodology/approach – The authors conduct a comprehensive analysis by using unit root approaches without and with structural breaks and non-linearity. Findings – The PPP is valid for the GIIPS countries. Considering structural breaks in non-linear framework plays a crucial role. Originality/value – There is no empirical study testing PPP hypothesis by focusing on the GIIPS countries. This study further takes into account for structural breaks and non-linearity in the real exchange rates of these countries.https://www.emerald.com/insight/content/doi/10.1108/AEA-10-2020-0146/full/pdfPPPUnit root testsReal exchange rateGIIPS |
| spellingShingle | Saban Nazlioglu Mehmet Altuntas Emre Kilic Ilhan Kucukkkaplan Purchasing power parity in GIIPS countries: evidence from unit root tests with breaks and non-linearity Applied Economic Analysis PPP Unit root tests Real exchange rate GIIPS |
| title | Purchasing power parity in GIIPS countries: evidence from unit root tests with breaks and non-linearity |
| title_full | Purchasing power parity in GIIPS countries: evidence from unit root tests with breaks and non-linearity |
| title_fullStr | Purchasing power parity in GIIPS countries: evidence from unit root tests with breaks and non-linearity |
| title_full_unstemmed | Purchasing power parity in GIIPS countries: evidence from unit root tests with breaks and non-linearity |
| title_short | Purchasing power parity in GIIPS countries: evidence from unit root tests with breaks and non-linearity |
| title_sort | purchasing power parity in giips countries evidence from unit root tests with breaks and non linearity |
| topic | PPP Unit root tests Real exchange rate GIIPS |
| url | https://www.emerald.com/insight/content/doi/10.1108/AEA-10-2020-0146/full/pdf |
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