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Journals / International Journal of Economics and Finance Studies / 2016 / Cilt: 8 Sayı: 2

TESTING FOR PURCHASING POWER PARITY FOR SELECTED CIS COUNTRIES

Esra Ballı
Çiler Sigeze
Pages
84–93
Publication Date
2016-12-01
DOI
—
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Given the span and characteristics of the period which involves a significant break such as 1998 Russian economic crisis, we conclude that PPP holds for Armenia, Belarus, Kazakhstan and Kyrgyzstan, while it does not hold for Azerbaijan, Russia and Ukraine.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:This study examines the validity of PPP for Commonwealth of Independent States (CIS) namely Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Russia and Ukraine for the period 1995M1-2015M11.
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Key Findings & Data:In this study we perform stationary test on two bases.
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Conclusion & Impact:Given the span and characteristics of the period which involves a significant break such as 1998 Russian economic crisis, we conclude that PPP holds for Armenia, Belarus, Kazakhstan and Kyrgyzstan, while it does not hold for Azerbaijan, Russia and Ukraine.
🔬Design:Research Article
📍Scope:Comprehensive Sample
⚙️Variables:Purchasing Power Parity · Real Exchange Rate · Transition Economies

Abstract

This study examines the validity of PPP for Commonwealth of Independent States (CIS) namely Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Russia and Ukraine for the period 1995M1-2015M11. In this study we perform stationary test on two bases. In the first place, we initiate conventional unit root test such as ADF. Secondly, we utilize unit root tests allowing for structural break. Given the span and characteristics of the period which involves a significant break such as 1998 Russian economic crisis, we conclude that PPP holds for Armenia, Belarus, Kazakhstan and Kyrgyzstan, while it does not hold for Azerbaijan, Russia and Ukraine.

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Cite This Article

Ballı, E., Sigeze, Ç. (2016). TESTING FOR PURCHASING POWER PARITY FOR SELECTED CIS COUNTRIES. International Journal of Economics and Finance Studies, Cilt: 8 Sayı: 2, 84–93. https://ajindex.com/articles/993662

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