برابری قدرت خرید و تصحیح خطای پویا: شواهد از اقتصاد آسیا و اقیانوسیه

This study investigates the validity of purchasing power parity (PPP) hypothesis as a long run equilibrium condition for thirteen Asia Pacific economies using a generalized error correction model. The results of the generalized dynamic specification appear to support PPP for more countries than do standard tests for unit roots. Out of the thirteen bilateral exchange rates, evidence of PPP is found for only one (the Mexican peso/U.S. dollar rate) under traditional tests for unit roots, while seven of them support PPP under the generalized dynamic error correction model. It appears that one of the factors that lead standard tests for unit roots to fail to detect evidence of PPP may be the undue restrictions imposed on the model specification.