The past few years of have reinvigorated interest in the manufacturing and service sectors of developing economies. Several developing economies have had a manufacturing-led growth, especially displayed in the case of the South-East Asian countries ( the ‘Tigers’), while other economies, led...

While it is widely agreed that Purchasing Power Parity (PPP) holds as a long-run concept the specific dynamic driving the process is largely build upon a priori economic belief rather than a thorough statistical modeling procedure. The two prevailing time series models, i.e. the exponential...