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dc.contributor.authorThomas, Alastair G Aen_NZ
dc.identifier.citationThomas, A. G. A. (2001, October). The Balassa-Samuelson model in Asia (Dissertation, Bachelor of Commerce with Honours). Retrieved from
dc.description.abstractTwo problems have occurred in the recent literature with regard to the empirical testing of the Balassa-Samuelson productivity based explanation of deviations from Purchasing Power Parity. First, empirical work has commonly focused only on the overall prediction of the model, instead of the underlying mechanisms. Second, the countries examined have, in almost all cases, been inappropriate given the underlying theory. This study focuses on two papers that combat these problems. Their approaches are combined and extended to construct a more logical and thorough procedure for testing the Balassa-Samuelson model. Cointegration analysis is used in a three-stage testing procedure examining eight Asian Countries relative to the United States. First, the validity of Purchasing Power Parity is tested, then the general prediction of the Balassa-Samuelson model, and finally the underlying mechanism of the model is tested. Support is found for the general prediction of the model, however in contrast to other recent studies no support is found for the underlying mechanism. This suggests two things: the theorised mechanism is not the true causative factor, and the general relationship tested here, and in several prior studies, is in fact misspecified. This relationship was consequently re-specified, the result being that less support was now found for the overall prediction.en_NZ
dc.subjectPurchasing Power Parityen_NZ
dc.subjectCointegration analysis,en_NZ
dc.subject.lcshHF Commerceen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshH Social Sciences (General)en_NZ
dc.subject.lcshHB Economic Theoryen_NZ
dc.titleThe Balassa-Samuelson model in Asiaen_NZ
otago.schoolEconomicsen_NZ of Commerce with Honours of Otagoen_NZ Dissertationsen_NZ
otago.openaccessAbstract Only
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