Purchasing Power Parity In West African Monetary Zone
-The purpose of this article is to test the validity of long run Purchasing Power Parity (PPP) in West Africa
Monetary Zone which is under ECOWAS regional bloc over the period of April 1980 to January 2014 .We employ ADF and
PP unit root test, then proceed further with Johansen cointegration also in order to compare the outcome of our results.Panel
unit root and cointegration method were also employed respectively,.Empirical results from both time series and panel
approach testing indicated that PPP holds for WAMZ under ECOWAS. Our finding possesses significant policy implications
for WAMZ under ECOWAS.
Keywords-Purchasing Power Parity, Panel Unit Root Tests, Panel Cointegration, Economic Community of West Africa
States and West Africa Monetary Zone.