The aim of this study is to examine empirically the validity of PPP in the context of unit root tests based on linear and non-linear models of the real effective exchange rate of Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. For this purpose, we apply the Harvey et al. (2008)...

Substantial amount of studies have examined the validity of mean-reversion on the real exchange rate. However very limited studies of this nature have been conducted in Sub-Saharan Africa countries, particularly energy exporting countries, hence this study endeavors to find evidence for or...