by Chang, Tsangyao
and Chiu, Chi Chen and Tzeng, Han Wen
Published in Romanian Journal of Economic Forecasting,
2011, volume 14 issue 2, 19-30
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This study applies the powerful rank test for nonlinear cointegration proposed by Brietung (2001) to test the validity of long-run purchasing power parity (PPP) for nine transition countries from January 1995 to December 2008. The empirical results indicate that PPP holds true for all nine transition countries studied. Our results have important policy implications for these nine transition countries.
Keywords:
Rank Test for Nonlinear Cointegration; Purchasing Power Parity;
Transition Countries
JEL Classification: