Re-examination of price level differentials using economic freedom index

Citation

Shaar, Karam and Syed Mohamed, Mohamed Ariff (2016) Re-examination of price level differentials using economic freedom index. Journal of International Trade and Economic Development, 25 (6). pp. 880-896. ISSN 0963-8199; ESSN: 1469-9559

Abstract

Findings reported in this paper provide improved explanation as to what factors are correlated with price levels across a large sample of 152 countries. The results are obtained from using a new set of variables called economic freedom indices, covering 19 years. Prior studies used income, trade openness, and productivity, which led to results with much less explanatory power compared to findings reported in this paper. We apply advanced panel data econometrics to obtain robust estimates of parameters, which, in our view, led to results with substantially high coefficient of variations close to 90%. The findings show that all the nine dimensions of economic freedom used in this study significantly account for the variations in national price levels.

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Official URL or Download Paper: http://www.tandfonline.com/doi/abs/10.1080/0963819...

Additional Metadata

Item Type:	Article
Divisions:	Faculty of Economics and Management
DOI Number:	https://doi.org/10.1080/09638199.2015.1137345
Publisher:	Routledge
Keywords:	Price differentials; Economic freedom; Law of one price; Purchasing power parity; Balassa–Samuelson effect; Productivity differentials
Depositing User:	Nurul Ainie Mokhtar
Date Deposited:	15 Jan 2018 02:36
Last Modified:	15 Jan 2018 02:36
Altmetrics:	http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.1080/09638199.2015.1137345
URI:	http://psasir.upm.edu.my/id/eprint/53746
Statistic Details:	View Download Statistic

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