Purchasing power parity and free trade area.

Citation

Lee, Chin (2010) Purchasing power parity and free trade area. The Empirical Economics Letters, 9 (10). pp. 1003-1008. ISSN 1681-8997

Abstract

The aim of this paper is to apply recently developed panel cointegration techniques proposed by Pedroni (1999, 2004) to evaluate the effectiveness of various regional trade agreements by examine the goods market integration between trading partners using purchasing power parity (PPP). The results obtained from panel cointegration tests strongly support the validity of long-run PPP in almost all cases. Evidence of price convergence suggested that the panel countries of free trade areas (FTAs) are integrated, hence FTAs has fostererd the price convergence.

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Additional Metadata

Item Type:	Article
Divisions:	Faculty of Economics and Management
Publisher:	The Publisher
Keywords:	Purchasing power parity; Economic integration; Free trade area; Panel cointegration test.
Depositing User:	Emelda Mohd Hamid
Date Deposited:	18 Oct 2013 04:32
Last Modified:	05 Oct 2015 04:14
URI:	http://psasir.upm.edu.my/id/eprint/16390
Statistic Details:	View Download Statistic

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