Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests

YILDIRIM KASAP, DİLEM

Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests

DİLEM YILDIRIM KASAP (Department of Economics, Middle East Technical University, 06531, Ankara, Turkey)

Central Bank Review

2 1

Yıl: 2017 Cilt: 17 Sayı: 2 Sayfa Aralığı: 39 - 45 Metin Dili: İngilizce İndeks Tarihi: 29-07-2022

Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests

Öz:

This study explores the empirical validity of the purchasing power parity (PPP) hypothesis betweenTurkey and its four major trading partners, the European Union, Russia, China and the US. Accounting forthe nonlinear nature of real exchange rates, we employ a battery of recently developed nonlinear unitroot tests. Our empirical results reveal that nonlinear unit root tests deliver stronger evidence in favour ofthe PPP hypothesis when compared to the conventional unit root tests only if nonlinearities in realexchange rates are correctly speciŞed. Furthermore, it emerges from our Şndings that the real exchangerates of the countries having a free trade agreement are more likely to behave as linear stationaryprocesses.© 2017 Central Bank of The Republic of Turkey. Production and hosting by Elsevier B.V. This is an openaccess article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Anahtar Kelime:

Konular: İşletme İktisat

Belge Türü: Makale Makale Türü: Araştırma Makalesi Erişim Türü: Erişime Açık

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APA	YILDIRIM KASAP D (2017). Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests. , 39 - 45.
Chicago	YILDIRIM KASAP DİLEM Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests. (2017): 39 - 45.
MLA	YILDIRIM KASAP DİLEM Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests. , 2017, ss.39 - 45.
AMA	YILDIRIM KASAP D Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests. . 2017; 39 - 45.
Vancouver	YILDIRIM KASAP D Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests. . 2017; 39 - 45.
IEEE	YILDIRIM KASAP D "Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests." , ss.39 - 45, 2017.
ISNAD	YILDIRIM KASAP, DİLEM. "Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests". (2017), 39-45.

APA	YILDIRIM KASAP D (2017). Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests. Central Bank Review, 17(2), 39 - 45.
Chicago	YILDIRIM KASAP DİLEM Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests. Central Bank Review 17, no.2 (2017): 39 - 45.
MLA	YILDIRIM KASAP DİLEM Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests. Central Bank Review, vol.17, no.2, 2017, ss.39 - 45.
AMA	YILDIRIM KASAP D Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests. Central Bank Review. 2017; 17(2): 39 - 45.
Vancouver	YILDIRIM KASAP D Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests. Central Bank Review. 2017; 17(2): 39 - 45.
IEEE	YILDIRIM KASAP D "Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests." Central Bank Review, 17, ss.39 - 45, 2017.
ISNAD	YILDIRIM KASAP, DİLEM. "Empirical investigation of purchasing power parity for Turkey: Evidence from recent nonlinear unit root tests". Central Bank Review 17/2 (2017), 39-45.