The empirical analysis of the purchasing power parity in Romania
The empirical analysis of the purchasing power parity in Romania
Author(s): Ecaterina TomoiagăSubject(s): Supranational / Global Economy, International relations/trade, Economic development, Financial Markets
Published by: Alma Mater & Universitatea »Babes Bolyai« Cluj - Facultatea de St. Economice si Gestiunea Afacerilor
Keywords: purchasing power parity; exchange rate; vector error correction; consumer price index;
Summary/Abstract: In this paper we test the validity of purchasing power parity for Romania in relation with the main trading partner EU19. To the best of our knowledge, there is no any other similar study in the literature so far. The utility of the study comes from the possibility of offering trade policy recommendation for Romania. The data used in the paper covers the period 2005 (January) - 2019 (March). For estimation, we employ vector error correction model and we reach to the conclusion that the theory is validated in the short run.
Journal: Review of Economic Studies and Research Virgil Madgearu
- Issue Year: XII/2019
- Issue No: 2
- Page Range: 145-154
- Page Count: 10
- Language: English
- Content File-PDF