International Conference on Eurasian Economies
5-7 October 2017 – Bishkek, KYRGYZSTAN
Paper detail
Paper ID : 2008
Status : Paper published
Language : English
Topic : Macroeconomics
Presenter: Assoc. Prof. Dr. İlhan Küçükkaplan
Session : 2A Growth & Development
On The Purchasing Power Parity in Turkey: The Role of Structural Changes
On The Purchasing Power Parity in Turkey: The Role of Structural Changes
- Prof. Dr. Şaban Nazlıoğlu (Pamukkale University, Türkiye)
- Dr. Çağın Karul (Pamukkale University, Türkiye)
- Asst. Prof. Dr. Ahmet Koncak (Bolu Abant İzzet Baysal University, Türkiye)
- Assoc. Prof. Dr. İlhan Küçükkaplan (Pamukkale University, Türkiye)
Abstract
Turkey as an emerging country and one of the fastest growing economies during the last decade has been implementing the trade-oriented growth model since 1980. The exchange rate policy in that respect is at the center of trade and monetary policies. Given the importance of constructing fundamental equilibrium exchange rates, the long-run PPP hypothesis has been empirically investigated during the last decade. We re-examine the purchasing power parity (PPP) hypothesis for Turkey with her ten major trading partners and find out that when the structural shifts are taken into account, there is a strong evidence in favor of the validity of PPP hypothesis. An interesting finding also is that the PPP hypothesis seems to hold for the European Union countries.
JEL codes:
Nazlıoğlu, Şaban, Karul, Çağın, Koncak, Ahmet, Küçükkaplan, İlhan (2017). "On The Purchasing Power Parity in Turkey: The Role of Structural Changes" in Proceedings of International Conference of Eurasian Economies 2017, pp.32-35, Bishkek, KYRGYZSTAN.
DOI: https://doi.org/10.36880/C09.02008
Session 2A: Growth & Development
