Testing Ppp In Seacen-9 Countries
Many empirical studies on the Purchasing Power Parity (PPP) have mushroomed since the collapse of Bretton Woods’ system in 1973. However, there are only a few study focused on developing countries like SEACEN. The objective of this study is to test the existence of PPP in selected SEACEN-9 countries...
Saved in:
Main Author: | |
---|---|
Format: | Final Year Project Report |
Language: | English English |
Published: |
Universiti Malaysia Sarawak (UNIMAS)
2008
|
Subjects: | |
Online Access: | http://ir.unimas.my/id/eprint/20779/1/TESTING%20PPP%20IN%20SEACEN-9%20COUNTRIES%2024pgs.pdf http://ir.unimas.my/id/eprint/20779/4/David%20Nee%20Chai%20Leong.pdf http://ir.unimas.my/id/eprint/20779/ |
Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
id |
my.unimas.ir.20779 |
---|---|
record_format |
eprints |
spelling |
my.unimas.ir.207792024-01-25T02:54:07Z http://ir.unimas.my/id/eprint/20779/ Testing Ppp In Seacen-9 Countries Nee, David Chai Leong HC Economic History and Conditions HJ Public Finance Many empirical studies on the Purchasing Power Parity (PPP) have mushroomed since the collapse of Bretton Woods’ system in 1973. However, there are only a few study focused on developing countries like SEACEN. The objective of this study is to test the existence of PPP in selected SEACEN-9 countries using time series analysis. In this study, two models were constructed to prevent ambiguity in interpreting our results. The period chosen for US-SEACEN Model encompassed the real bilateral exchange rates of SEACEN-9 countries from 1970Q1 until 2006Q4 for a total of 147 observations. Meanwhile in Yuan-SEACEN Model, monthly data spanning from 2001 M1 until 2006 M12 were used for a total of 72 observations. The unit root tests and stationary tests are used to test the existence of PPP in the SEACEN-9 countries. The results of unit root tests and stationary tests show that the usages of reference currencies greatly affect the stationarity of real bilateral exchange rates of SEACEN-9 countries. In US-SEACEN Model, stationary of real bilateral exchange rates were found for countries Indonesia, Korea, Malaysia and Singapore. In the other hand, we are able to found the existence of PPP between Myanmar, Nepal, Singapore, Sri Lanka and Thailand with China in China Yuan-SEACEN Model. This study has suggested some policies that can be carried out by the SEACEN member countries to gain benefit from the existence of PPP. Universiti Malaysia Sarawak (UNIMAS) 2008 Final Year Project Report NonPeerReviewed text en http://ir.unimas.my/id/eprint/20779/1/TESTING%20PPP%20IN%20SEACEN-9%20COUNTRIES%2024pgs.pdf text en http://ir.unimas.my/id/eprint/20779/4/David%20Nee%20Chai%20Leong.pdf Nee, David Chai Leong (2008) Testing Ppp In Seacen-9 Countries. [Final Year Project Report] (Unpublished) |
institution |
Universiti Malaysia Sarawak |
building |
Centre for Academic Information Services (CAIS) |
collection |
Institutional Repository |
continent |
Asia |
country |
Malaysia |
content_provider |
Universiti Malaysia Sarawak |
content_source |
UNIMAS Institutional Repository |
url_provider |
http://ir.unimas.my/ |
language |
English English |
topic |
HC Economic History and Conditions HJ Public Finance |
spellingShingle |
HC Economic History and Conditions HJ Public Finance Nee, David Chai Leong Testing Ppp In Seacen-9 Countries |
description |
Many empirical studies on the Purchasing Power Parity (PPP) have mushroomed since the collapse of Bretton Woods’ system in 1973. However, there are only a few study focused on developing countries like SEACEN. The objective of this study is to test the existence of PPP in selected SEACEN-9 countries using time series analysis. In this study, two models were constructed to prevent ambiguity in interpreting our results. The period chosen for US-SEACEN Model encompassed the real bilateral exchange rates of SEACEN-9 countries from 1970Q1 until 2006Q4 for a total of 147 observations. Meanwhile in Yuan-SEACEN Model, monthly data spanning from 2001 M1 until 2006 M12 were used for a total of 72 observations. The unit root tests and stationary tests are used to test the existence of PPP in the SEACEN-9 countries. The results of unit root tests and stationary tests show that the usages of reference currencies greatly affect the stationarity of real bilateral exchange rates of SEACEN-9 countries. In US-SEACEN Model, stationary of real bilateral exchange rates were found for countries Indonesia, Korea, Malaysia and Singapore. In the other hand, we are able to found the existence of PPP between Myanmar, Nepal, Singapore, Sri Lanka and Thailand with China in China Yuan-SEACEN Model. This study has suggested some policies that can be carried out by the SEACEN member countries to gain benefit from the existence of PPP. |
format |
Final Year Project Report |
author |
Nee, David Chai Leong |
author_facet |
Nee, David Chai Leong |
author_sort |
Nee, David Chai Leong |
title |
Testing Ppp In Seacen-9 Countries |
title_short |
Testing Ppp In Seacen-9 Countries |
title_full |
Testing Ppp In Seacen-9 Countries |
title_fullStr |
Testing Ppp In Seacen-9 Countries |
title_full_unstemmed |
Testing Ppp In Seacen-9 Countries |
title_sort |
testing ppp in seacen-9 countries |
publisher |
Universiti Malaysia Sarawak (UNIMAS) |
publishDate |
2008 |
url |
http://ir.unimas.my/id/eprint/20779/1/TESTING%20PPP%20IN%20SEACEN-9%20COUNTRIES%2024pgs.pdf http://ir.unimas.my/id/eprint/20779/4/David%20Nee%20Chai%20Leong.pdf http://ir.unimas.my/id/eprint/20779/ |
_version_ |
1789430292101988352 |
score |
13.160551 |