Examining the validity of PPP: The black market exchange rate versus official rate (p.83-92) ![[Fichier PDF]](images/pdf.png) |
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| Aslan Alper, University of Erciyes, Faculty of Economics and Administrative Sciences, Department of Economics, Kayseri, Turkey |
| Kula Ferit, University of Erciyes, Faculty of Economics and Administrative Sciences, Department of Economics, Kayseri, Turkey |
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| Keywords : PPP, Black Market Exchange Rates |
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| Abstract |
| The long-run purchasing power parity (PPP) hypothesis is re-examined for Turkey by using the black market and official exchange rate through standard (ADF, PP) newer and more powerful tests (KPSS, DF-GLS) for the period 1969M1- 1998 M12. Over all result implies all unit root test support PPP in Turkey. This could be explained by a high similarity with the exchange rate series. |
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