Muhammad, Sulaiman D.
[Verfasser:in]
;
Umer, Muhammad
[Sonstige Person, Familie und Körperschaft];
Lal, Irfan
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
In: European Journal of Scientific Research, Vol. 37, No. 4, pp. 608-615, 2009
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 4, 2009 erstellt
Beschreibung:
The examination of the purchasing power parity theory with reference to Pakistan is the prime objective of this paper. Consumer price index (CPI), whole sale price index (WPI), and the nominal exchange rates (NEER) are variables in this study for the period 1980-2008, on the basis of mean reversion hypothesis. Engle-Granger co-integration and Error Correction Mechanism have been employed to test the purchasing power parity. As a result of this study mean reversion hypothesis does not support PPP, where co-integration analysis specify that PPP holds but unconvincing with reference to Pakistan, and Error correction mechanism (ECM) analysis strengthen short run dynamics in the said model