Document Type
Original Study
Subject Areas
Political Science
Keywords
Purchasing Power Parity, Nonlinear Unit Root Tests, Structural Change, Asymmetric Adjustment, Azerbaijan
Abstract
This article examines the validity of purchasing power parity hypothesis for Azerbaijan. Econometric investigation uses linear and nonlinear unit root tests and are based on the time series characteristics of the real exchange rate of Azerbaijan’s manat versus the national currencies of its major trading partners; USA, European Union, Russia and Turkey. Findings support the validity of the purchasing power parity hypothesis between Azerbaijan and its market economy dominated trading partners, but not support between Azerbaijan and its former centrally controlled partner.
How to Cite This Article
Agazade, Seymur
(2015)
"Testing Purchasing Power Parity Hypothesis for Azerbaijan,"
Khazar Journal of Humanities and Social Sciences: Vol. 18:
Iss.
3, Article 4.
DOI: 10.5782/2223-2621.2015.18.3.48
Available at:
https://kjhss.khazar.org/journal/vol18/iss3/4
Publication Date
2015