Theoretical and Applied Economics
No. 4 / 2017 (613), Winter
Inflation convergence among the next eleven economies: Evidence from asymmetric nonlinear unit root test
Istanbul University, Turkey
Abstract. The purpose of the present paper is to investigate whether or not inflation convergence exists among the Next-Eleven (N-11) country members which are Bangladesh, Egypt, Indonesia, Iran, South Korea, Mexico, Nigeria, Pakistan, the Philippines, Turkey and Vietnam, employing the asymmetric nonlinear unit root procedure of Sollis (2009). The data set involves monthly consumer price indices of N-11 countries for the period from January 1995 to April 2015 and the inflation rate differential of each country is calculated in order to test inflation convergence. The empirical results indicate that there exists inflation convergence among the economies of Bangladesh, Indonesia, Iran, South Korea, Mexico, the Philippines, Turkey and Vietnam. It is suggested that a common monetary policy would be designed and a successful monetary union would be constituted for these countries.
Contents
The financial stability index – An insight into the financial and economic conditions of Romania
The strategy for reducing unemployment. Employment in the European Union
Economic value of portfolio diversification: Evidence from international multi-asset portfolios
Inflation convergence among the next eleven economies: Evidence from asymmetric nonlinear unit root test
Bitcoin as digital money: Its growth and future sustainability
Target P/E ratio determinants in the Turkish Stock Market: Earning volatility effect
Wavelets based multiscale analysis of select global equity returns
The cost to have a healthy population – The European Union's strategy
The relationship between oil and stock prices: The case of developing and developed countries
Macroeconomic determinants of income inequality in India and Pakistan
Urbanisation and inequalities in China and India. Overview and comparative study
Examination of the exchange rate and interest rate channels of the monetary transmission mechanism during the inflation targeting: Turkey and Mexico countries examples
Macroeconomic determinants of public debt growth: A case study for Tunisia
Dynamic regime switching behaviour between cash and futures market: A case of interest rates in India