This study tests the validity of the purchasing power parity (PPP) theory using a panel of ten Arab countries. It also measures the speed of convergence for the panel and for the Gulf Cooperation Council (GCC), including Bahrain, Kuwait, Qatar, Saudi Arabia and United Arab Emirates which follow...

This study tests the validity of the purchasing power parity (PPP) theory using a panel of ten Arab countries. It also measures the speed of convergence for the panel and for the Gulf Cooperation Council (GCC), including Bahrain, Kuwait, Qatar, Saudi Arabia and United Arab Emirates which follow...

In this study we employ Chang and Song (2005) new panel testing procedure that allow for individual panel units to be dependent through correlations among innovations, or cross-sectional cointegrations to test for real exchange rate mean reversion in African panels. The procedure uses covariates...