Efficiency of the black market for foreign exchange and PPP: the case of the Dominican Republic

Sanchez-Fung, Jose R. (1999) Efficiency of the black market for foreign exchange and PPP: the case of the Dominican Republic. Applied Economics Letters, 6 (3). pp. 173-176. ISSN 1350-4851. (The full text of this publication is not available from this repository)

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Official URL
http://dx.doi.org/10.1080/135048599353573

Abstract

Efficiency of the black market for foreign exchange in a developing country can be assessed by testing whether that market complies with the 'relative' version of the purchasing power parity hypothesis. This paper applies nonstationarity and cointegration to investigate this hypothesis for the Dominican Republic. Both the Engle-Granger and Johansen techniques support cointegration, so the black market for foreign exchange in the Dominican Republic is efficient.

Item Type: Article
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HB Economic Theory
Divisions: Faculties > Social Sciences > School of Economics
Depositing User: F.D. Zabet
Date Deposited: 28 Mar 2009 19:13
Last Modified: 17 Jul 2014 11:39
Resource URI: http://kar.kent.ac.uk/id/eprint/16591 (The current URI for this page, for reference purposes)
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