Purchasing power parity in B5 countriesBekő, Jani (Avtor) Boršič, Darja (Avtor) panel unit root testspanel cointegration teststourism sectorconsumer price indices for hotels and restaurantsThis chapter examines the PPP hypothesis in five Balkan countries (B5). The current analysis incorporates four important novelties. First, from a methodological standpoint, the PPP is scrutinized by a range of first-gener­ation and second-generation panel unit root tests. Additionally, three pan­el cointegration tests are performed: the Pedroni residual cointegration test, the Kao residual cointegration test and the Johansen Fisher cointegration test. Second, the study utilizes two price indicators: the consumer price index for hotels and restaurants and the general consumer price index. Third, the PPP proposition for the Balkan economies is inspected using a new, updated data set covering the period from January 2006 to December 2023. Fourth, two nu­meraire currencies, the euro and the USD, are operated to assess the validity of exchange rate parity conditions. The econometric results provide resolute support for the PPP concept in the group of B5 countries.Association of Economists and Managers of the Balkans; Faculty of Tourism and Hospitality20242025-05-10 03:09:39Znanstveno delo92751UDK: 338.48OceCobissID: 152888329COBISS_ID: 210663683DOI: 10.31410/tmt.2023-2024.61sl