Essays on Trade, Growth and Exchange Rates
In the first chapter we test if Purchasing Power Parity, PPP, is empirically valid and when that is not the case we test if productivity growth differences can account for the deviations from PPP by co-integration analysis. Interestingly, the results lend support in favour of PPP in several cases and when PPP is rejected GDP per capita growth rate differences seem to explain the long-run deviation
