THE PPP THEORY OF INFLATION AND POST COLONIAL TRADE RELATIONSHIPS: THE CASE OF TWO AFRICAN COUNTRIES
Using the absolute version of the Purchasing Power Parity(PPP) theory, the paper models the nominal exchange rate and the price level as integrated process that ensure that trade between two countries will render the real exchange rate as a stationary variables. After conducting a Unit Root Test on...
Main Authors: | , |
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Format: | Article |
Language: | English |
Published: |
People & Global Business Association (P&GBA)
2007-09-01
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Series: | Global Business and Finance Review |
Subjects: | |
Online Access: | http://www.gbfrjournal.org/pds/journal/thesis/20150624110605-4SN26.pdf |