Baharumshah, Ahmad Zubaidi; Liew, Venus Khim-Sen; … - In: Applied Economics Letters 15 (2008) 12, pp. 955-958
This article aims at testing real interest parity (RIP) by using nonlinear unit root tests. The results from Kapetanios et al. (2003) demonstrated that the adjustment of ASEAN-5 real interest rates towards real interest rates in Japan and the US follows a nonlinear (stationary) process. Overall,...