Purchasing Power Parity Theory Test in Turkey: (1923-1980) Cliometric Fourier Analysis

Authors : Hasan Azazi, Müşerref Arik, Melike Buse Akcan

Pages : 145-154

View : 133 | Download : 86

Publication Date : 2023-12-30

Article Type : Research Paper

Abstract :The study is a cliometric analysis created to determine the stability level of purchasing power parity (PPT) in Turkey between the years 1923-1980. The absence of any study examining the post-republican period with the Fourier analysis method shows the contribution of this study to the literature. Real exchange rate values for the relevant years were used in the study. These values were obtained using the State Institute of Statistics report.. In the study, Unit Root Tests (ADF, Phillips-Perron) were used assuming that the series were linear and Fourier ADF Unit Root Tests were used assuming that the series were non-linear. The test result shows that the PPP theory is not valid between the relevant years.
Keywords : Satınalma Gücü Paritesi, Fourier ADF, Kliometrik Analiz, ADF, Phiilips Perron