THE VALIDITY OF THE PURCHASING POWER PARITY HYPOTHESIS IN OECD COUNTRIES: EVIDENCE FROM THE FOURIER TEST / OECD Ülkelerinde Satın Alma Gücü Paritesi Hipotezinin Geçerliliği: Fourier Testinden Kanıtlar
According to purchasing power parity (PPP), the nominal exchange rate between the two currencies should be equal to the ratio of the total price levels between the two countries. In other words, it is a simple theory that argues that countries' currencies will have the same purchasing value. In...
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| Format: | Article |
| Language: | English |
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Recep Tayyip Erdoğan Üniversitesi
2021-10-01
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| Series: | Uluslararası Ekonomi, İşletme ve Politika Dergisi |
| Subjects: | |
| Online Access: | https://dergipark.org.tr/tr/download/article-file/1948746 |
| _version_ | 1797662276392583168 |
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| author | Süreyya İmre |
| author_facet | Süreyya İmre |
| author_sort | Süreyya İmre |
| collection | DOAJ |
| description | According to purchasing power parity (PPP), the nominal exchange rate between the two currencies should be equal to the ratio of the total price levels between the two countries. In other words, it is a simple theory that argues that countries' currencies will have the same purchasing value. In this study, 25 OECD countries is aimed to test the validity of the purchasing power parity hypothesis. The validity of the hypothesis was tested with the monthly data of 1980-Q1 2018-Q12 and Fourier KPSS unit root tests. As a result of the analysis, the validity of the purchasing power parity hypothesis was provided in Brazil, France, Italy, Sweden, Iceland, Ireland, Spain; It has been determined that the purchasing power parity hypothesis is not valid in the countries of Australia, Austria, Belgium, Canada, Germany, Japan, Malaysia, Mexico, Switzerland, USA, Chile, Colombia, Finland, Luxembourg, Netherlands, New Zealand, Norway, Portugal. |
| first_indexed | 2024-03-11T18:57:48Z |
| format | Article |
| id | doaj.art-baa51764170c4adc8dfeba446734f178 |
| institution | Directory Open Access Journal |
| issn | 2587-2559 |
| language | English |
| last_indexed | 2024-03-11T18:57:48Z |
| publishDate | 2021-10-01 |
| publisher | Recep Tayyip Erdoğan Üniversitesi |
| record_format | Article |
| series | Uluslararası Ekonomi, İşletme ve Politika Dergisi |
| spelling | doaj.art-baa51764170c4adc8dfeba446734f1782023-10-10T18:17:37ZengRecep Tayyip Erdoğan ÜniversitesiUluslararası Ekonomi, İşletme ve Politika Dergisi2587-25592021-10-015227428910.29216/ueip.9888531075THE VALIDITY OF THE PURCHASING POWER PARITY HYPOTHESIS IN OECD COUNTRIES: EVIDENCE FROM THE FOURIER TEST / OECD Ülkelerinde Satın Alma Gücü Paritesi Hipotezinin Geçerliliği: Fourier Testinden KanıtlarSüreyya İmre0İSTANBUL GELİŞİM ÜNİVERSİTESİAccording to purchasing power parity (PPP), the nominal exchange rate between the two currencies should be equal to the ratio of the total price levels between the two countries. In other words, it is a simple theory that argues that countries' currencies will have the same purchasing value. In this study, 25 OECD countries is aimed to test the validity of the purchasing power parity hypothesis. The validity of the hypothesis was tested with the monthly data of 1980-Q1 2018-Q12 and Fourier KPSS unit root tests. As a result of the analysis, the validity of the purchasing power parity hypothesis was provided in Brazil, France, Italy, Sweden, Iceland, Ireland, Spain; It has been determined that the purchasing power parity hypothesis is not valid in the countries of Australia, Austria, Belgium, Canada, Germany, Japan, Malaysia, Mexico, Switzerland, USA, Chile, Colombia, Finland, Luxembourg, Netherlands, New Zealand, Norway, Portugal.https://dergipark.org.tr/tr/download/article-file/1948746oecd countriespurchasing power parityreal exchange ratefourier kpss unit root testsoecd ülkelerisatın alma gücü paritesireel döviz kurufourier kpss birim kök testleri |
| spellingShingle | Süreyya İmre THE VALIDITY OF THE PURCHASING POWER PARITY HYPOTHESIS IN OECD COUNTRIES: EVIDENCE FROM THE FOURIER TEST / OECD Ülkelerinde Satın Alma Gücü Paritesi Hipotezinin Geçerliliği: Fourier Testinden Kanıtlar Uluslararası Ekonomi, İşletme ve Politika Dergisi oecd countries purchasing power parity real exchange rate fourier kpss unit root tests oecd ülkeleri satın alma gücü paritesi reel döviz kuru fourier kpss birim kök testleri |
| title | THE VALIDITY OF THE PURCHASING POWER PARITY HYPOTHESIS IN OECD COUNTRIES: EVIDENCE FROM THE FOURIER TEST / OECD Ülkelerinde Satın Alma Gücü Paritesi Hipotezinin Geçerliliği: Fourier Testinden Kanıtlar |
| title_full | THE VALIDITY OF THE PURCHASING POWER PARITY HYPOTHESIS IN OECD COUNTRIES: EVIDENCE FROM THE FOURIER TEST / OECD Ülkelerinde Satın Alma Gücü Paritesi Hipotezinin Geçerliliği: Fourier Testinden Kanıtlar |
| title_fullStr | THE VALIDITY OF THE PURCHASING POWER PARITY HYPOTHESIS IN OECD COUNTRIES: EVIDENCE FROM THE FOURIER TEST / OECD Ülkelerinde Satın Alma Gücü Paritesi Hipotezinin Geçerliliği: Fourier Testinden Kanıtlar |
| title_full_unstemmed | THE VALIDITY OF THE PURCHASING POWER PARITY HYPOTHESIS IN OECD COUNTRIES: EVIDENCE FROM THE FOURIER TEST / OECD Ülkelerinde Satın Alma Gücü Paritesi Hipotezinin Geçerliliği: Fourier Testinden Kanıtlar |
| title_short | THE VALIDITY OF THE PURCHASING POWER PARITY HYPOTHESIS IN OECD COUNTRIES: EVIDENCE FROM THE FOURIER TEST / OECD Ülkelerinde Satın Alma Gücü Paritesi Hipotezinin Geçerliliği: Fourier Testinden Kanıtlar |
| title_sort | validity of the purchasing power parity hypothesis in oecd countries evidence from the fourier test oecd ulkelerinde satin alma gucu paritesi hipotezinin gecerliligi fourier testinden kanitlar |
| topic | oecd countries purchasing power parity real exchange rate fourier kpss unit root tests oecd ülkeleri satın alma gücü paritesi reel döviz kuru fourier kpss birim kök testleri |
| url | https://dergipark.org.tr/tr/download/article-file/1948746 |
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