TESTING THE PURCHASE POWER PARITY HYPOTHESIS FOR BRICS: EVIDENCE FROM FOURIER UNIT ROOT AND COINTEGRATION TEST

This study is a review of the purchasing power parity hypothesis applied to BRICS countries (Brazil, Russia, India, China, and South Africa). For each country, time series based on a Fourier perspective was applied. The initial stages of the study analyzed the stationarity of the series using Fourier unit root testing. The series was found to be stationary at level I(1), paving the way for the Fourier Shin cointegration test, which constituted the second stage. The analysis revealed cointegration associations with all BRICS countries. Hence, it is understood that the purchasing power parity theory applies to all five countries.

Dergi

JOURNAL OF MEHMET AKIF ERSOY UNIVERSITY ECONOMICS AND ADMINISTRATIVE SCIENCES FACULTY

Yıl

2021

Cilt

8

Sayı

3

Sayfa

1394-1406

ISSN

2149-1658

DOI

10.30798/makuiibf.822369

WoS UID

WOS:000725183600008