Surveying the Validity of PPP In the Dairy Sector of EU by Using Nonlinear Cointegration
نویسندگان
چکیده
The present study surveys the validity of PPP in the dairy sector for European countries. We implement in the context of nonlinear smooth transmition error correction model the associated nonlinear ECM-based tests as well as the nonlinear analogue of the residual-based test for cointegration in linear models proposed by Kapetanios et.al (2006). The aforementioned tests are employed with the assistance of R software. The innovation of our survey stands on the fact that the particular method is used for first time in the case of agricultural products and especially in the case of dairy sector for countries of European Union given the implementation of CAP regime, amplifying the validity of PPP.
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