Re-examination of the long-run purchasing power parity: further evidence from Turkey

---

Korap H. L., Aslan O.

APPLIED ECONOMICS, vol.42, no.27, pp.3559-3564, 2010 (SSCI)

• Publication Type: Article / Article
• Volume: 42 Issue: 27
• Publication Date: 2010
• Doi Number: 10.1080/00036840802129798
• Journal Name: APPLIED ECONOMICS
• Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
• Page Numbers: pp.3559-3564
• Open Archive Collection: AVESIS Open Access Collection
• Marmara University Affiliated: Yes

Abstract

In this article, we re-examine the empirical validity of the Purchasing Power Parity (PPP) theory for the Turkish economy. For this purpose, an empirical model is constructed using some contemporaneous estimation techniques such as multivariate co-integration and vector error correction methodology. Our estimation results reveal that the PPP can strongly be supported as a long-run stationary steady-state relationship for the Turkish economy.