A study on the short and long run determinants of purchasing power parity in Malaysia

• Main Authors: Abu Hassan Asari, Fadli Fizari, Miseman, Mohd Rizal, Hamid, Nurzahidah, Shamsudin, Norazidah, Mohamad, Zuraida, Jusoff, Kamaruzaman
• Format: Article
• Language: English
• Published: IDOSI Publications 2011
• Online Access: http://psasir.upm.edu.my/id/eprint/44554/1/A%20study%20on%20the%20short%20and%20long%20run%20determinants%20of%20purchasing%20power%20parity%20in%20Malaysia.pdf; http://psasir.upm.edu.my/id/eprint/44554/; https://www.idosi.org/wasj/wasj12(BES)2011.htm

Purchasing Power Parity (PPP) concept is founded on the law of one price; which is the idea that in the absence of transaction costs, identical goods will have the same price in different markets. This concept is particularly prominent in three ways; one (1) it theorizes the exchange rate determinat...