Testing the long-run PPP for Turkey: new evidence from the Fourier quantile unit root test

Doğanlar M., KIZILKAYA O., Mike F.

Applied Economics Letters, vol.27, no.9, pp.729-735, 2020 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 27 Issue: 9
  • Publication Date: 2020
  • Doi Number: 10.1080/13504851.2019.1644435
  • Journal Name: Applied Economics Letters
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, IBZ Online, International Bibliography of Social Sciences, ABI/INFORM, Business Source Elite, Business Source Premier, CAB Abstracts, EconLit, Geobase, Public Affairs Index, Veterinary Science Database, DIALNET
  • Page Numbers: pp.729-735
  • Keywords: Fourier function, Purchasing power parity, quantile unit root test, Turkey
  • Hakkari University Affiliated: Yes

Abstract

This study analyses the long-run validity of the purchasing power parity (PPP) between Turkey and its major trading partners (China, Euro Area, Russia, United Kingdom, and United States) by using the Fourier quantile unit root test. Fourier quantile unit root test results show that PPP is valid for all countries. Additionally, the Fourier quantile unit root test presents more evidence in favour of the PPP hypothesis in comparison to conventional and other Fourier-type unit root tests.