MENA countries have been confronted with major social, economic and political changes during the last two decades. During this period some emerging countries and transition economies also experienced similar transformation at varying degrees. The transformation of the economic system has affected not only relative domestic prices but also the gap between domestic and international price levels. The paper focuses on how deviation of domestic prices from international market prices is affected by openness in the selected countries. The difference between domestic and international price level is calculated by employing purchasing power parity (PPP). The factors that may have an effect on domestic-foreign price differences other than openness also are considered as control variables of the empirical analyses.
Topics in Middle Eastern and North African Economies
Middle East Economic Association and Loyola University Chicago
Dogruel, Fatma and Dogruel, A. Suut, "Price Convergence and Globalization: Evidence from Selected Countries". Topics in Middle Eastern and North African Economies, electronic journal, 15, Middle East Economic Association and Loyola University Chicago, 2013, http://www.luc.edu/orgs/meea/
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