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An Empirical Investigation of Purchasing Power Parity for a Transition Economy - Cambodia

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  • Venus Khim-Sen Liew
  • Tuck Cheong Tang

Abstract

This study has found an empirical support of Purchasing Power Parity (PPP) theory for an East Asia transition economy – Cambodia. It is based on the results of cointegration among KHR/USD, Cambodia CPI, and world CPI over the monthly period May 2001-February 2009. This finding is useful for policy implications i.e. de-dollarization (and exchange rates) policy designs in Cambodia.

Suggested Citation

  • Venus Khim-Sen Liew & Tuck Cheong Tang, 2009. "An Empirical Investigation of Purchasing Power Parity for a Transition Economy - Cambodia," Monash Economics Working Papers 25-09, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2009-25
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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2009/2509empiricalliewtang.pdf
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    References listed on IDEAS

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    Cited by:

    1. Olalekan Bashir Aworinde, 2014. "Are Bilateral Real Exchange Rates Stationary? Empirical Evidence from Nigeria," Economics Bulletin, AccessEcon, vol. 34(1), pages 271-286.
    2. Siphat Lim, 2021. "Testing Purchasing Power Parity in Cambodia: Time-Varying Trade Weights in Constructing Real Effective Exchange Rate," International Journal of Economics and Financial Issues, Econjournals, vol. 11(3), pages 146-153.

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    More about this item

    Keywords

    Cambodia; Dollarization; Exchange Rates; Purchasing Power Parity;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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