The purchasing power parity hypothesis in Turkey: evidence from nonlinear STAR error correction models

ÖZDEMİR Z. A.

APPLIED ECONOMICS LETTERS, vol.15, no.4, pp.307-311, 2008 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 15 Issue: 4
  • Publication Date: 2008
  • Doi Number: 10.1080/13504850500447315
  • Journal Name: APPLIED ECONOMICS LETTERS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.307-311
  • Ankara Haci Bayram Veli University Affiliated: No

Abstract

This study re-examines the validity of long-run purchasing power parity (PPP) hypothesis for Turkey using nonlinear cointegration technique. The finding of this article provides the evidence that the long run PPP hypothesis is valid by using nonlinear cointegration technique. This finding argues the validity of the long-run PPP hypothesis in bilateral Turkish real exchange rates with the USA, which is also supported by Sarno (2000) and Erlat (2004).