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| Author | : Monaheng Seleteng |
| Publisher | : |
| Total Pages | : 166 |
| Release | : 2012 |
| Genre | : |
| ISBN | : |
| Author | : Makiliwè Barcola |
| Publisher | : |
| Total Pages | : 21 |
| Release | : 2019 |
| Genre | : |
| ISBN | : |
In this paper, we test the existence of an optimal inflation interval within which, the inflation of the west African countries supports economic growth. Besides this objective, we seek to test the validity of the 5% inflation threshold not to be exceeded, proposed as a convergence criterion for the fifteen countries of the region called to form a monetary union by 2020. Our analysis covers the period 2007-2016. By adopting a nonlinear approach, our investigation reveals two (02) endogenous inflation thresholds estimated at 8.01% and 15.46%. The positive effect on growth begins when inflation is comprised between the two thresholds. Above this interval, inflation has no effect on economic growth. Our results invalidate hence the 5% inflation threshold proposed as a convergence criterion and for supporting economic growth within the future monetary union. For a high-performing monetary union, preferably it would be better to define an inflation threshold between 8.01 and 15.46% as convergence criterion.
| Author | : |
| Publisher | : |
| Total Pages | : 48 |
| Release | : 2007 |
| Genre | : Africa, Southern |
| ISBN | : |
| Author | : Robert Burgess |
| Publisher | : INTERNATIONAL MONETARY FUND |
| Total Pages | : 29 |
| Release | : 2009-06-15 |
| Genre | : |
| ISBN | : 9781462321278 |
| Author | : Maria Tobias Mkango |
| Publisher | : |
| Total Pages | : 110 |
| Release | : 2015 |
| Genre | : Economic development |
| ISBN | : |
"The main aim of this research is to investigate the nature of the relationship between inflation and economic growth. Over the years theoretical and empirical studies have presented different views about the relationship. Literatures on the topic have reported three types of results on the relationship between inflation and growth, positive relationship, negative relationship, and non-existence of any type of relationship between the two variables. This study analyzes empirically the inflation and growth nexus using time series data from three countries in Sub-Saharan African, obtained from the World Bank database. The countries under study are Gabon, Kenya, and South Africa. The methodologies employed in the study are ADF Unit root test, Granger causality test, and OLS. The empirical results reveal that the relationship between inflation and economic growth is long run, nonlinear, negative, and significant for Kenya and South African, while it is found to be insignificant in Gabon. From the empirical results, the study has recommended some appropriate policies."--Leaf ii.
| Author | : Southern African Development Community. Consultative Conference |
| Publisher | : Community |
| Total Pages | : 82 |
| Release | : 1998 |
| Genre | : Business & Economics |
| ISBN | : |
| Author | : P. H. Spies |
| Publisher | : |
| Total Pages | : 102 |
| Release | : 1986 |
| Genre | : Economic forecasting |
| ISBN | : |
| Author | : |
| Publisher | : |
| Total Pages | : 48 |
| Release | : 2007 |
| Genre | : Africa, Southern |
| ISBN | : |
| Author | : Priscilla Iriagbonse-Alikor |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2022 |
| Genre | : |
| ISBN | : |
This paper investigates the nonlinear impact of inflation on growth using a balanced panel data set of Southern African Countries from 1980-2021. The estimated results are robust across different competing econometrics techniques. The study observed that economic growth is impacted differently at low and high inflation levels. At a low level of inflation, the study found a positive and significant impact of inflation on economic growth. Economic growth is inflation-inducing below the inflation threshold. However, at a high level of inflation, economic growth is negatively and significantly impacted. For countries with an average inflation rate below the identified threshold (24.7%), the inflation rate has a strong positive impact on economic growth. This suggests that the marginal impact of inflation on economic growth starts becoming negative at 24.7%. Moreover, against theoretical expectations, a high inflation rate does not appear to reduce economic growth by crowding out investment in physical capital. The negative impact of inflation on economic growth operates through a lower quality of population growth rather than population growth per se. Overall, the empirical findings of this study provide policy direction to the government and monetary authorities.
| Author | : Mr.Dhaneshwar Ghura |
| Publisher | : International Monetary Fund |
| Total Pages | : 32 |
| Release | : 1995-12-01 |
| Genre | : Business & Economics |
| ISBN | : 1451855753 |
The paper investigates empirically the determinants of economic growth for a large sample of sub-Saharan African countries during 1981-92. The results indicate that (i) an increase in private investment has a relatively large positive impact on per capita growth; (ii) growth is stimulated by public policies that lower the budget deficit in relation to GDP (without reducing government investment), reduce the rate of inflation, maintain external competitiveness, promote structural reforms, encourage human capital development, and slow population growth; and (iii) convergence of per capita income occurs after controlling for human capital development and public policies.
