Liew, Venus Khim-Sen and Ahmad Zubaidi, Baharumshah and Lau, Evan (2004) Nonlinear Adjustment towards Purchasing Power Parity in ASEAN Exchange Rates. The IUP Journal of Applied Economics, 3 (6). pp. 1-27. ISSN 0972-6861
|
PDF
Nonlinear Adjustment Purchasing Power Parity Deviations (abstract).pdf Download (73kB) | Preview |
Official URL: https://www.researchgate.net/publication/5105006
Abstract
The major finding of this study is that the long run purchasing power parity (PPP) deviations of the major ASEAN exchange rates exhibit nonlinear adjustment which may be characterised by the Smooth Transition Autoregressive (STAR) model. This finding warrants us that policy decision based on inappropriate linear studies may not be effectiveness. Besides, exchange rates with deviations with higher speed of adjustment are found to be more pruned to currency crisis.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Purchasing Power Parity, Asean Exchange, international finance, unimas, university, universiti, Borneo, Malaysia, Sarawak, Kuching, Samarahan, ipta, education, research, Universiti Malaysia Sarawak |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Academic Faculties, Institutes and Centres > Faculty of Economics and Business Faculties, Institutes, Centres > Faculty of Economics and Business |
| Depositing User: | Ab Rahim |
| Date Deposited: | 20 Nov 2017 08:00 |
| Last Modified: | 20 Nov 2017 08:00 |
| URI: | http://ir.unimas.my/id/eprint/18648 |
Actions (For repository members only: login required)
 |
View Item |
