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Title: |
Testing for Long Run Purchasing Power Parity:
An Examination of Korean Won |
| Author: |
Bahmani-Oskooee,
Mohsen; Rhee, Hyun-Jae |
| Author
Affiliation: |
U WI, Milwaukee |
| Source: |
International Economic Journal, Autumn 1992, v. 6, no. 3, pp. 93-103 |
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Publication Date: |
Autumn 1992 |
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Abstract: |
Most previous recent studies that have
tested the Purchasing Power Parity Theory (PPP) have used cointegration
technique and bilateral exchange rates. In this paper the authors also
use cointegration technique, but effective exchange rate concept to test
the PPP for Korean won. Using monthly data on exchange rates and price
levels of 19 trading partners of Korea, they provide enough evidence to
reject the PPP, a result similar to those of previous studies. |
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