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Testing Real Exchange Rate In 10 Asian Countries : Yuan Or Yen

This study applies a number of both univariate and panel unit root tests for time series data to consider the Purchasing Power Parity (PPP) hypothesis within ten ( I 0) Asian countries with the Chinese Yuan and Japanese Yen as their numeraires. Real exchange rates data spanning from 1981:MI till...

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Bibliographic Details
Main Author: Choong, Xin Yi
Format: Final Year Project Report
Language:English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2008
Subjects:
HB Economic Theory
HG Finance
Online Access:http://ir.unimas.my/id/eprint/37985/2/Chong%20Xin%20Yi.pdf
http://ir.unimas.my/id/eprint/37985/
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spelling my.unimas.ir.379852023-02-08T08:14:22Z http://ir.unimas.my/id/eprint/37985/ Testing Real Exchange Rate In 10 Asian Countries : Yuan Or Yen Choong, Xin Yi HB Economic Theory HG Finance This study applies a number of both univariate and panel unit root tests for time series data to consider the Purchasing Power Parity (PPP) hypothesis within ten ( I 0) Asian countries with the Chinese Yuan and Japanese Yen as their numeraires. Real exchange rates data spanning from 1981:MI till 2006:M10 is utilized for the stationarity tests. It is found that the Yuan based countries do not exhibit the mean reverting behaviour for all the IO currencies with all the econometric modeling employed. On the other hand, there are selected currencies which are found to be stationary against the Yen. Hence, this study may safely suggest that the recent talks about Asian Monetary Union may be foreseeable with Japan as the region's leader. However, as the empirical results may show that only selected countries are able to hold the theory of PPP against the Yen, thus the formation of the union may as well start off with the appropriate countries initially. Universiti Malaysia Sarawak, (UNIMAS) 2008 Final Year Project Report NonPeerReviewed text en http://ir.unimas.my/id/eprint/37985/2/Chong%20Xin%20Yi.pdf Choong, Xin Yi (2008) Testing Real Exchange Rate In 10 Asian Countries : Yuan Or Yen. [Final Year Project Report] (Unpublished)
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic HB Economic Theory
HG Finance
spellingShingle HB Economic Theory
HG Finance
Choong, Xin Yi
Testing Real Exchange Rate In 10 Asian Countries : Yuan Or Yen
description This study applies a number of both univariate and panel unit root tests for time series data to consider the Purchasing Power Parity (PPP) hypothesis within ten ( I 0) Asian countries with the Chinese Yuan and Japanese Yen as their numeraires. Real exchange rates data spanning from 1981:MI till 2006:M10 is utilized for the stationarity tests. It is found that the Yuan based countries do not exhibit the mean reverting behaviour for all the IO currencies with all the econometric modeling employed. On the other hand, there are selected currencies which are found to be stationary against the Yen. Hence, this study may safely suggest that the recent talks about Asian Monetary Union may be foreseeable with Japan as the region's leader. However, as the empirical results may show that only selected countries are able to hold the theory of PPP against the Yen, thus the formation of the union may as well start off with the appropriate countries initially.
format Final Year Project Report
author Choong, Xin Yi
author_facet Choong, Xin Yi
author_sort Choong, Xin Yi
title Testing Real Exchange Rate In 10 Asian Countries : Yuan Or Yen
title_short Testing Real Exchange Rate In 10 Asian Countries : Yuan Or Yen
title_full Testing Real Exchange Rate In 10 Asian Countries : Yuan Or Yen
title_fullStr Testing Real Exchange Rate In 10 Asian Countries : Yuan Or Yen
title_full_unstemmed Testing Real Exchange Rate In 10 Asian Countries : Yuan Or Yen
title_sort testing real exchange rate in 10 asian countries : yuan or yen
publisher Universiti Malaysia Sarawak, (UNIMAS)
publishDate 2008
url http://ir.unimas.my/id/eprint/37985/2/Chong%20Xin%20Yi.pdf
http://ir.unimas.my/id/eprint/37985/
_version_ 1758582576537141248
score 13.211869

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