Revista Economică , vol.71, no.1, pp.89-98, 2019 (Peer-Reviewed Journal)
In this study, PPP, which has been the most important of many studies over the years
as the exchange rate determination method in the literature, between 2003 January
and 2017 August was tested for its validity in Turkey. The PPP was analyzed by ADF -
PP and Lee-Strazicich fracture unit root tests in the study. Results of the study, the
real exchange rate was not stable in the classical unit root tests. Three break-up dates
were determined by Lee-Strazicich fracture root tests and it was determined that PPP
was valid in case of structural breaks.