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Purchasing Power Parity for Developing and Developed Countries. What can we Learn from Non-Stationary Panel Data Models?

Drine, Imed; Rault, Christophe - CESifo - 2008

The aim of this paper is to apply recently developed panel cointegration techniques proposed by Pedroni (1999, 2004) and generalized by Banerjee and Carrion-i-Silvestre (2006) to examine the robustness of the PPP concept for a sample of 80 developed and developing countries. We find that strong...

Persistent link: https://www.econbiz.de/10005405826

PPP and the Balassa Samuelson Effect: the Role of the Distribution Sector

MacDonald, Ronald; Ricci, Luca - CESifo - 2001

This paper investigates the impact of the distribution sector on the real exchange rate, controlling for the Balassa-Samuelson effect, as well as other macro variables. Long-run coefficients are estimated using a panel dynamic OLS estimator. The main result is that an increase in the...

Persistent link: https://www.econbiz.de/10005406139

Pairwise Tests of Purchasing Power Parity Using Aggregate and Disaggregate Price Measures

Pesaran, M. Hashem; Smith, Ron P.; Yamagata, Takashi; … - CESifo - 2006

In this paper we adopt a new approach to testing for purchasing power parity, PPP, that is robust to base country effects, cross-section dependence, and aggregation. Given data on N +1 countries, i, j = 0, 1, 2, ..., N, the standard procedure is to apply unit root or stationarity tests to N...

Persistent link: https://www.econbiz.de/10005094274

Long Run Macroeconomic Relations in the Global Economy

Dees, Stephane; Holly, Sean; Pesaran, M. Hashem; Smith, … - CESifo - 2007

This paper focuses on testing long run macroeconomic relations for interest rates, equity, prices and exchange rates within a model of the global economy. It considers a number of plausible long run relationships suggested by arbitrage in financial and goods markets, and uses the global vector...

Persistent link: https://www.econbiz.de/10005181243

China, Hong Kong, and Taiwan: A Quantitative Assessment of Real and Financial Integration

Cheung, Yin-Wong; Chinn, Menzie D.; Fujii, Eiji - CESifo - 2003

The status of real and financial integration of China, Hong Kong, and Taiwan is investigated using monthly data on one … the parity conditions is shrinking over time. In particular, China and Hong Kong appear to have experienced significant …

Persistent link: https://www.econbiz.de/10005181319

Active Currency Investing and Performance Benchmarks

Melvin, Michael; Shand, Duncan - CESifo - 2010

There are no established benchmarks for evaluating currency investment manager performance. Some analysts have suggested that known investing styles like momentum, purchasing power parity, and carry serve as benchmarks. Challenges for this approach include: there is no market portfolio; there...

Persistent link: https://www.econbiz.de/10008572529

Reconsidering the Price-Income Relationship across Countries

Fujii, Eiji - CESifo - 2013

This study reconsiders the well-known cross-country positive association between prices and income by focusing on heterogeneity between the inter-developed-country and inter-developing-country relationships. Empirical results reveal not only that developed and developing countries differ in...

Persistent link: https://www.econbiz.de/10010627561

A Role Model for China? Exchange Rate Flexibility and Monetary Policy in Japan

Schnabl, Gunther; Danne, Christian - CESifo - 2007

provides an important role model for China, this paper studies the role of the yen/dollar exchange rate for Japanese monetary …

Persistent link: https://www.econbiz.de/10005405989

Promotion of Trade and Investments between China and India: The Case of Southwest China and East and Northeast India

De, Prabir; Bhattacharyay, Biswa N. - CESifo - 2005

Open regionalism and integration between the world’s two largest developing countries - the People’s Republic of China … (China) and India - in trade, investments and infrastructure development can foster outward-oriented development and economic … economic integration between China and India involving common neighbouring countries could be increasing. This paper discusses …

Persistent link: https://www.econbiz.de/10005406059

Economic-Social Interaction in China

Lindbeck, Assar - CESifo - 2008

This paper analyzes economic-social interaction in China in connection with the country’s change of economic system. I … China’s options for future social improvements into three broad categories: policies that improve the stability and …

Persistent link: https://www.econbiz.de/10005406215