scholarly journals Re-examining purchasing power parity for East-Asian currencies: 1976–2002

2008 ◽  
Vol 18 (1) ◽  
pp. 75-85 ◽  
Author(s):  
Ahmad Zubaidi Baharumshah ◽  
Chan Tze-Haw ◽  
Stilianos Fountas
Keyword(s):  
Purchasing Power Parity ◽  
East Asian ◽  
Purchasing Power ◽  
Power Parity

scholarly journals Purchasing Power Parity and Productivity-Bias Hypothesis

2015 ◽  
Vol 8 (2) ◽  
pp. 9-38
Author(s):  
Tri Widodo
Keyword(s):  
Purchasing Power Parity ◽  
Significant Contribution ◽  
East Asian ◽  
The Philippines ◽  
Purchasing Power ◽  
Asian Countries ◽  
Power Parity ◽  
Republic Of China ◽  
Traded Goods ◽  
Univariate Time Series

AbstractThis paper examines the purchasing power parity (PPP) theorem adjusted the “productivity-bias hypothesis” or the Balassa-Samuelson effect (Balassa, 1964; Samuelson, 1964) for eight East Asian countries including Japan, New Industrializing Economies (NIE-3: Singapore; Hong Kong, China; and Korea), the ASEAN-3 (Malaysia, Indonesia and the Philippines) and the People’s Republic of China (PRC). This paper applies three methods of analysis i.e. univariate time series, multivariate regression and Johansen multivariate cointegration. The three methods give the same conclusions. First, the PPP hypothesis does not hold in the case of the eight East Asian countries. Second, non-traded goods give significant contribution on the PPP deviation. It is confirmed by the existence of Balassa-Samuelson effect.

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