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, cilt.27, sa.9, ss.729-735, 2020 (SSCI) identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 27 Sayı: 9
  • Basım Tarihi: 2020
  • Doi Numarası: 10.1080/13504851.2019.1644435
  • Dergi Adı: Applied Economics Letters
  • Derginin Tarandığı İndeksler: 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
  • Sayfa Sayıları: ss.729-735
  • Anahtar Kelimeler: Fourier function, Purchasing power parity, quantile unit root test, Turkey
  • Hakkari Üniversitesi Adresli: Evet

Özet

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.