Resumen de Testing purchasing power parity hypothesis for transition economies

Ebru Guven Solakoglu

• This study tests the PPP hypothesis for transition economies by using a panel approach. The results show that PPP holds for transition economies suggesting a half-life convergence of about one year. This study also compares the convergence rates for �less open� and �more open� transition countries. It is found that �more open� transition economies converge faster than �less open� transition economies.