Political Rights, Civil Liberties and the PPP Developing Countries

Bahmani‐Oskooee, Mohsen; Goswami, Gour Gobinda

Political Rights, Civil Liberties and the PPP Developing Countries

Bahmani-Oskooee and Goswami, G. G. (2004). "Political Rights, Civil Liberties and the PPP Developing Countries", The Global Journal of Finance and Economics, 1(1), 1-9.

9 Pages Posted: 18 May 2020

See all articles by Mohsen Bahmani‐Oskooee

Mohsen Bahmani‐Oskooee

University of Wisconsin - Milwaukee - Center for Research on International Economics

Gour Gobinda Goswami

North South University

Date Written: 2004

Abstract

What causes the PPP-based exchange rate to deviate from the equilibrium rate that is determined by the market forces? After reviewing all the factors from the literature, we argue that the gap between the PPP and the equilibrium exchange rate is wider in countries that have less political rights. We support this hypothesis by using data /rom 69 developing countries over 1972-1998 period in a panel setting. T'he results strongly support the notion that lack of political rights and civil liberties indeed contribute to the deviation of the PPP from the equilibrium exchange rate in developing countries.

Keywords: Political Rights; Civil Liberties; Democracy; PPP

JEL Classification: F3

Suggested Citation: Suggested Citation

Bahmani-Oskooee, Mohsen and Goswami, Gour Gobinda, Political Rights, Civil Liberties and the PPP Developing Countries (2004). Bahmani-Oskooee and Goswami, G. G. (2004). "Political Rights, Civil Liberties and the PPP Developing Countries", The Global Journal of Finance and Economics, 1(1), 1-9., Available at SSRN: https://ssrn.com/abstract=3573484