Inflation Threshold Levels and Economic Growth in the Franc Zone Countries
Author: Dimitri Sanga
Publisher:
Published: 2020
Total Pages:
ISBN-13:
DOWNLOAD EBOOKPosts
Threshold effects of inflation on economic growth in selected African regional economic communities: Evidence from a dynamic panel threshold modeling
Author: Arcade Ndoricimpa
Publisher: Litres
Published: 2022-01-29
Total Pages: 19
ISBN-13: 5040069391
DOWNLOAD EBOOKThe objective of this study is to estimate inflation threshold and examine its impact on the inflation-growth nexus in selected African regional economic communities. While a number of empirical studies exist in this area for developing countries, they bundle up countries from Asia, Africa and Latin America which do not have the same inflation experiences. This study therefore focuses on Africa. However, since African regional groupings themselves have different inflation experiences, non-linearity in the relationship between inflation and growth is explored within each grouping separately. The study uses dynamic panel threshold modeling recently suggested by Kremer et al. (2013) which extends the non-dynamic panel threshold model of Hansen (1999) and the cross-sectional threshold model of Caner and Hansen (2004). The results indicate that the estimated inflation threshold is different across the regional economic communities. Nonlinearity in inflation-growth nexus seems to hold in CEMAC, COMESA and SADC while it is questioned in WAEMU and WAMZ. For CEMAC, COMESA and SADC, the findings indicate that inflation above the threshold is harmful to growth. Some correlations are established in this study but further analysis is needed to suggest a policy.
Linkages in Price Level and Inflation Rate Between Cfa Franc Zone Countries and France
Author: Diep Nuven
Publisher: International Monetary Fund
Published: 1994-08-01
Total Pages: 18
ISBN-13: 1451951205
DOWNLOAD EBOOKThe price level behaviors of the CFA franc zone countries with respect to the price level of France, defined in terms of long-run convergence in price level and short-run linear dependence of their inflation rates are not homogenous and have a break-point in the mid 1980s except for Congo. This paper quantifies the evolution of the price level behavior of each CFA franc zone country from 1979 to 1993 using the cointegration and error-correction model techniques. The interzone linkages are also examined using the simple vector autoregression model.
Threshold Effects in the Relationship Between Inflation and Growth
Author: Mohsin S. Khan
Publisher: International Monetary Fund
Published: 2000-06
Total Pages: 38
ISBN-13:
DOWNLOAD EBOOKThis paper reexamines the issue of the existence of threshold effects in the relationship between inflation and growth, using new econometric techniques that provide appropriate procedures for estimation and inference. The threshold level of inflation above which inflation significantly slows growth is estimated at 1–3 percent for industrial countries and 7–11 percent for developing countries. The negative and significant relationship between inflation and growth, for inflation rates above the threshold level, is quite robust with respect to the estimation method, perturbations in the location of the threshold level, the exclusion of high-inflation observations, data frequency, and alternative specifications.
Inflation Thresholds and the Finance-Growth Nexus
Author: Peter L. Rousseau
Publisher:
Published: 2013
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKThe robustness of the cross-sectional relationship between the size of a country's financial sector and its rate of economic growth is by now well established. In this article, we examine whether the strength of this relationship varies with the inflation rate. Using five-year averages of standard measures of financial development, inflation, and growth for 84 countries from 1960 to 1995, a series of rolling panel regressions show that there is an inflation threshold for the finance-growth relationship that lies between 13 and 25 percent. When inflation exceeds the threshold, finance ceases to increase economic growth. We also find that the level of financial depth varies inversely with inflation in low-inflation environments and that disinflation is associated with a positive effect of financial depth on growth.
Economic Growth and Inflation in Europe
Author: Jesús Crespo Cuaresma
Publisher:
Published: 2014
Total Pages: 0
ISBN-13:
DOWNLOAD EBOOKThis article reassesses the impact of inflation on long-term growth for a panel of 14 European Union countries in the years prior to monetary unification. While previous research mostly focuses on a linear nexus or allows for a piecewise linear relationship with a single threshold, this study takes account of a more complex relationship. The empirical estimates for the full EU sample confirm the hypothesis that the relationship between inflation and growth is positive for very low inflation rates (that is, below an estimate of 1.6 per cent), insignificant thereafter and negative for high, two-digit inflation levels. The estimate of the inflation level that divides the insignificant from the negative effect is found to be higher in the group of traditional cohesion countries than for the rest of the sample.
Inflation Thresholds and the Finance-Growth Nexus
Author: Peter L. Rousseau
Publisher:
Published: 2008
Total Pages: 23
ISBN-13:
DOWNLOAD EBOOKThe robustness of the cross-sectional relationship between the size of a country's financial sector and its rate of economic growth is by now well established. In this article, we examine whether the strength of this relationship varies with the inflation rate. Using five-year averages of standard measures of financial development, inflation, and growth for 84 countries from 1960 to 1995, a series of rolling panel regressions show that there is an inflation threshold for the finance-growth relationship that lies between 13 and 25 percent. When inflation exceeds the threshold, finance ceases to increase economic growth. We also find that the level of financial depth varies inversely with inflation in low-inflation environments and that disinflation is associated with a positive effect of financial depth on growth.
Econometric Methods for Analyzing Economic Development
Author: Schaeffer, Peter V.
Publisher: IGI Global
Published: 2013-07-31
Total Pages: 339
ISBN-13: 1466643307
DOWNLOAD EBOOKExploring and understanding the analysis of economic development is essential as global economies continue to experience extreme fluctuation. Econometrics brings together statistical methods for practical content and economic relations. Econometric Methods for Analyzing Economic Development is a comprehensive collection that focuses on various regions and their economies at a pivotal time when the majority of nations are struggling with stabilizing their economies. Outlining areas such as employment rates, utilization of natural resources, and regional impacts, this collection of research is an excellent tool for scholars, academics, and professionals looking to expand their knowledge on todays turbulent and changing economy.
Economic Growth and Policy in the Digital Era
Author: Morlai Bangura
Publisher: Cari Journals USA LLC
Published: 2024-07-12
Total Pages: 115
ISBN-13: 9914980473
DOWNLOAD EBOOKTOPICS IN THE BOOK Inflation-Economic Growth Nexus in Nigeria: New Evidence on Threshold Effects Reforming Digital Trade Rules at the WTO: Clarifying E-Commerce Regulation Policy Space for Economic Inclusion Government Expenditure and Economic Growth Nexus in Ghana Sectoral Utilization of Foreign Exchange and the Policy Implications for Economic Growth in Nigeria (1997 – 2022) The Rise of Bitcoin ETFs and its Impact on Existing Crypto Currency Exchanges
FDI to Africa
Author: Mr.Kenneth Rogoff
Publisher: International Monetary Fund
Published: 2003-01-01
Total Pages: 42
ISBN-13: 1451842716
DOWNLOAD EBOOKAfrica lags behind other regions in attracting foreign direct investment (FDI). In some circumstances, there are obvious explanations for the absence of FDI, such as a high incidence of war. In this paper, we examine the role that monetary and exchange rate policy may have played in explaining this outcome. Specifically, we document the incidence of inflationary episodes and currency crashes in order to compare countries within the region as well as to make comparisons with other regions. Furthermore, since monetary policy can range from very transparent to very opaque, we assess Africa's track record with dual and parallel markets. We use the parallel market premia as an indicator of the degree of distortions and extent of transparency. Our findings suggest that this is a promising line of inquiry because Africa does stand apart from other regions in this measure of transparency. We also discuss some of the fiscal underpinnings of Africa's bouts with high inflation.
