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The Impact of the Big Mac on Purchasing Power Parity (PPP) and Exchange<br />

Rate in Malaysia, Indonesia and Thailand<br />

Siti Hajar bt Mohd Azman<br />

Supervisor: Dr Nor Ermawati binti Hussain<br />

Bachelor of Economics (Natural Resources)<br />

School of Social and Economic Development<br />

The purpose of the research is to investigate the effects of Big Mac prices to the<br />

purchasing power parity (PPP) and exchange rate between Malaysia, Indonesia and<br />

Thailand. With used the panel data from 2006 until 2016 for Malaysia, Indonesia and<br />

Thailand, the results shows that there are short-term relationship exist between the<br />

purchasing power parity (PPP) and gross domestic product (GDP) for all countries.<br />

However, there are no long-term relationship showed between variables.<br />

1483 | UMT UNDERGRADUATE RESEARCH DAY 2018

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