Purchasing power parity in GIIPS countries: evidence from unit root tests with breaks and non-linearity
Year: 2021
Type: article
Abstract: Purpose This paper aims to test purchasing power parity (PPP) hypothesis for Greece, Italy, Ireland, Portugal and Spain, which are known as the GIIPS countries. Design/methodology/approach The authors conduct a comprehensive analysis by using unit root approaches without and with structural breaks and non-linearity. Findings The PPP is valid for the GIIPS countries. Considering structural breaks in non-linear framework plays a crucial role. Originality/value There is no empirical study testing PPP hypothesis by focusing on the GIIPS countries. This study further takes into account for structural breaks and non-linearity in the real exchange rates of these countries.
Source: Applied Economic Analysis
Institutions: İstanbul Nişantaşı Üniversitesi, Pamukkale University
Language: English
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W3204016231