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|Title:||Testing the PPP hypothesis in the sub-Saharan countries|
|Keywords:||Purchasing Power Parity (PPP);Fractional integration|
|Citation:||Economics and Finance Working Paper, Brunel University, 12-27, Nov 2012|
|Abstract:||This paper examines the PPP hypothesis in a number of Sub-Saharan countries by testing the order of integration in the log of their real exchange rate vis-à-vis the US dollar. I(d) techniques based on both asymptotic and finite sample results are used. The test results lead to the rejection of PPP in all cases: although orders of integration below 1 are found in fourteen countries, the unit root null cannot be rejected.|
|Appears in Collections:||Economics and Finance|
Dept of Economics and Finance Research Papers
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