%0 Journal Article
%T LONG-RUN VALIDITY OF PURCHASING POWER PARITY IN THE RECENT PERIOD: A STUDY OF TURKEY
%A Ayberk £¿EKER
%A Halil £¿£¿MD£¿
%J -
%D 2018
%X Purchasing Power Parity is based on ¡°Law of One Price¡± in exchange market and it is the rate of change which equal to the purchasing power of different country by removing the differences in price levels between countries. Accordingly, the aim of the study is to test whether the Purchasing Power Parity is valid for Turkey after the establishment of new Turkish Lira as of January 2005, which is one of the emerging market economies in the period of 2005:01-2017:03 by means of strong form tests. In addition, it is aimed to make contribute to the literature to be carried out a long-term test of the Purchasing Power Parity by strong form tecniques. Nominal exchange rate and domestic consumer price index of Turkey and US consumer price index variables are used within the scope of the study. Augmented Dickey-Fuller unit root test, Zivot and Andrews one breakpoint unit root test and Kapetanios (2005) unit root test which considers multiple structural breaks in stationarity analysis of the series has been carried out respectively in the study. After this analysis, the purchasing power parity was tested for Turkey in strong form by Maki (2012) cointegration test which takes into account multiple structural breaks. According to findings obtained as a result of the study; a long-run relationship has been determined between Turkey's nominal exchange rate, the domestic consumer price index and the US consumer price index
%K Sat£¿n Alma G¨¹c¨¹ Paritesi
%K Birim K£¿k Testi
%K Maki E£¿b¨¹t¨¹nle£¿me
%U http://dergipark.org.tr/sbe/issue/38551/377107