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Abstract

The goal of this study is to examine the validity of the long-run purchasing power parity PPP for a sample of nine principle trade partners of Algeria namely Canada, China, Japan, Switzerland, Sweden, Turkey, the United Kingdom, the United States and the euro zone countries. Using panel error correction model PECM upon monthly data for the period 2003 M1 – 2015M5, results suggested that the bilateral exchange rate movements is a suitable to support the purchasing power parity PPP hypothesis. However, suggesting that there is long run relationship between exchange rates and relative prices in foreign courtiers by using panel cointegraion of Pedroni 1999, 2004, that can be interpreted by the validity of purchasing power parity for nine principle trade partners of Algeria



Item Type: MPRA Paper -

Original Title: An Empirical Test of Purchasing Power Parity of the Algerian Exchange Rate: Evidence from Panel Dynamic-

English Title: An Empirical Test of Purchasing Power Parity of the Algerian Exchange Rate: Evidence from Panel Dynamic-

Language: English-

Keywords: Algeria, panel cointegration, Purchasing Power Parity PPP, panel error correction model PECM-

Subjects: F - International Economics > F3 - International Finance > F31 - Foreign ExchangeG - Financial Economics > G0 - General > G00 - General-





Autor: Si Mohammed, Kamel

Fuente: https://mpra.ub.uni-muenchen.de/75285/



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