Revisiting purchasing power parity in African countries: panel stationary test with sharp and smooth breaks
In this study, we apply the Panel Stationary test with both sharp and smooth breaks to test the validity of long-run purchasing power parity (PPP) for 20 African countries using quarterly data over the period 1971I-2012IV. Empirical results of Panel stationary tests with both sharp and smooth breaks indicate that PPP holds true for 10 out of these 20 African countries (i.e., Burkina Faso, Cameroon, Ghana, Kenya, Niger, Senegal, Seychelles, South Africa, Tanzania and Togo) studied.
Year of publication: |
2014
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Authors: | Bahmani-Oskooee, Mohsen ; Chang, Tsangyao ; Wu, Tsungpao |
Published in: |
Applied Financial Economics. - Taylor & Francis Journals, ISSN 0960-3107. - Vol. 24.2014, 22, p. 1429-1438
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Publisher: |
Taylor & Francis Journals |
Saved in:
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