Baharumshah, Ahmad Zubaidi; Liew, Venus Khim-Sen; Chan, … - Volkswirtschaftliche Fakultät, … - 2007
This paper aims at testing international parity conditions by using nonlinear unit root tests advocated by Kapetanios et al. (2003, KSS). Results from the KSS tests based on 17 countries (G7 and 10 Asian countries) overwhelmingly show that the adjustment of real interest rates towards the RIP...