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Applied Economics Letters Volume 13, 2006 - Issue 6
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Original Articles

New evidence of the validity of purchasing power parity from Jordan

Naser I Abumustafa Department of Finance and Economics, Gulf University for Science and Technology, Kuwait E-mail: [email protected]@gust.edu.kw
Pages 379-383 | Published online: 22 Aug 2006
 
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Abstract

Most empirical studies on purchasing power parity (PPP) have focused on developed countries rather than developing countries. This study tests PPP in Jordan. Different unit root tests and three different base countries are used to determine if the validity of PPP is influenced by the type of test and/or the base country. The results show that PPP in Jordan is not sensitive to the choice of base country but is influenced by test type.

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