Absolute Purchasing Power Parity in African Low-income Countries: A Panel Data Analysis

Abstract

The validity of absolute purchasing power parity (APPP) in African low-income countries is studied. The panel data method is used. Various dimensions are examined. It revealed that APPP holds better within the African countries than between the African countries and the US, holds better in some sub-panels than in the whole panel, and holds better in the post-Bretton Woods system period than in the Bretton Woods system period.