Authors: Salim, Ruhul; Hassan, Kamrul

Source: Applied Economics Letters, Volume 16, Number 1, January 2009 , pp. 103-107(5)

Publisher: Routledge, part of the Taylor & Francis Group

Abstract:

Relative population growth affects price levels through its effect on money demand and that in turn impacts Purchasing Power Parity (PPP). Standard time series econometrics is used to investigate this issue using data from 30 selected countries. The empirical results show that there is stable relationship between PPP exchange rate and relative population growth in selected countries in the long run. These findings demonstrate that population growth influences exchange rate determination through PPP.

Document Type: Research article

DOI: http://dx.doi.org/10.1080/13504850802616484

Affiliations: 1: School of Economics & Finance, Curtin University of Technology, Bently, Perth, Australia

Publication date: 2009-01-01

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