Threshold Effects on the Relationship Between Inflation Rate and Economic Growth in Tunisia

Dammak, Thouraya BoujelbÃ ̈ne; Helali, Kamel

doi:10.1080/10168737.2017.1289546

Cited by 16 publications

(10 citation statements)

References 23 publications

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“…This research is in line with Stockman's (1981) model that there is a negative relationship between inflation and economic growth. These results correspond to studies conducted by (Kusumatrisma et al, 2022;Mukhtar et al, 2015;Wiriani and Mukarramah, 2020). High inflation can disrupt the mobilization of funds, making the economy less stable.…”

Section: Effect Of Inflation On Economic Growth In Indonesiasupporting

confidence: 91%

Natural Resources Curse in Indonesia

Wahyudi

Palupi

2023

IJEEP

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The purpose of this study is to find out whether there is a curse or blessing of Indonesia's natural resources and to find out how the long-term influence of natural resource rents, foreign direct investment, inflation, and the Covid-19 pandemic on economic growth. Based on the purpose of the study, the method used is a Fully Modified Ordinary Least Square (FMOLS). The results show that Indonesia is free from the curse of natural resources, meaning that Indonesia's natural resources have blessings for economic growth. In addition, based on the FMOLS test, it is known that foreign direct investment has not influenced economic development. Meanwhile, inflation and Covid-19 have a negative and significant influence on Indonesia's economic growth.

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Section: Effect Of Inflation On Economic Growth In Indonesiasupporting

confidence: 91%

Natural Resources Curse in Indonesia

Wahyudi

Palupi

2023

IJEEP

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“…Though, several prior studies provide divergent results on the association between inflation rate and growth. For instance, Dammak and Helali (2017) suggest a threshold level of 3.48% for Tunisia, Ibarra and Trupkin (2016) finds 19.13% and 4.47% for non-industrialized and industrialized economies, respectively. Similarly, Thanh (2015) finds 7.84% for ASEAN-5 countries, Muzaffar and Junankar (2014) finds between 7% and 14% for 14 Asian countries, Kremer, Bick, and Nautz (2013) suggest 2% and 1% for industrialized and non-industrialized countries, respectively.…”

Section: Introductionmentioning

confidence: 99%

“…Unlike Muzaffar and Junankar (2014), misspecification of the growth equation, we incorporated the human capital variable in the empirical model. Finally, we used real GDP per growth as regressand, not Industrial Production Index used by Dammak and Helali (2017) The remaining of the present study is structured as follows: Section 2 presents a literature survey. Section 3 deals with data and model specifications.…”

Section: Introductionmentioning

confidence: 99%

“…Unlike Muzaffar and Junankar (2014), misspecification of the growth equation, we incorporated the human capital variable in the empirical model. Finally, we used real GDP per growth as regressand, not Industrial Production Index used by Dammak and Helali (2017). The methods of fixed‐effects (FE) and feasible generalized least squares (FGLS) are implemented based on the results of the Hausman test and other diagnostic tests, which yield significant and plausible theoretical results for policymakers.…”

Section: Introductionmentioning

confidence: 99%

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Threshold effects in the relationship between inflation and economic growth: Further empirical evidence from the developed and developing world

Azam

Khan

2020

Int. J Fin Econ

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We re‐evaluate empirically the threshold effect of inflation on economic growth for 27 countries (16 developing and 11 developed economies) over 1975–2018. Our research differs from the previous one in that it employs non‐average inflation data with a balanced panel for a longer period of time. The methods of fixed effects and feasible generalized least squares (FGLS) are used to estimate the inflation threshold and its effects on growth. The empirical estimates show a significant negative association between inflation and growth above the threshold level of inflation. The empirical estimate indicates that inflation impede growth when inflation exceeds the turning point 12.23% and 5.36% in Panel‐1 and Panel‐2, respectively, and with the greatest negative effects in Panel‐2. In addition, our findings provide evidence that gross fixed capital formation, government spending, household spending and real exports stimulate economic growth while the growth rate of the population is detrimental to the growth of the regions. Overall, the empirical result of this study could be of use in providing policy direction to governments and management authorities. In developing and developed economies, the management authorities need to cogitate a maximum rate of 12.3% and 5.4%, respectively, as an inflation target to avoid the detrimental effects of high inflation on economic growth for sustaining macroeconomic stability.

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“…Tahmin sonuçlarına göre, enflasyon-büyüme ilişkisi için %10,48 gibi bir eşik değerin varlığı teyit edilmekte ve bu oranın üzerindeki bir enflasyon oranı ekonomik büyümeyi yavaşlatmaktadır. Dammak & Helali (2017), Tunus'ta 1993M1-2012M11 dönemi için Hansen (1996Hansen ( , 2001 tarafından geliştirilen TAR modeli ile enflasyon-ekonomik büyüme ilişkisini incelemişlerdir. Sonuçlar, Tunus'da enflasyon oranı ile ekonomik büyüme arasındaki ilişkinin doğrusal olmadığını ve enflasyon için %3,48 düzeyinde bir eşik değerin varlığını göstermektedir.…”

Section: Ampirik Literatürunclassified

Enflasyon Ve Ekonomi̇k Büyüme: Oecd Ülkeleri̇ İçi̇n Di̇nami̇k Panel Eşi̇k Etki̇ Anali̇zi̇

Altıntaş¹,

Koçbulut²

2019

ijmeb

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Bu çalışmada Hansen (1999) tarafından geliştirilen panel eşik değer analizi kullanılarak 27 OECD ülkesinde 2000-2014 dönemi için enflasyon ile ekonomik büyüme arasındaki ilişkinin doğrusal olup olmadığının tespit edilmesi amaçlanmıştır. Elde edilen bulgular, enflasyon ile ekonomik büyüme arasında doğrusal bir ilişki olmadığına ve enflasyon için tek eşik değer bulunduğuna dair güçlü kanıtlar sunmaktadır. Bu sonuç, enflasyon oranlarına bağlı olarak ekonomik büyümenin farklı şekillerde etkilenebileceğini göstermektedir. Analizde incelenen ülke grubu için enflasyon oranı %3,286 seviyesinin üzerine çıktığında; enflasyon, ekonomik büyümeyi negatif etkilerken bu seviyenin altında ise etki tersine dönmektedir. Bu yüzden OECD ülkelerinde yüksek enflasyona neden olabilecek politikalardan vazgeçilmeli ve politika yapıcıların öncelikli hedefi fiyat istikrarı olmalıdır.

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Threshold Effects on the Relationship Between Inflation Rate and Economic Growth in Tunisia

Cited by 16 publications

References 23 publications

Natural Resources Curse in Indonesia

Natural Resources Curse in Indonesia

Threshold effects in the relationship between inflation and economic growth: Further empirical evidence from the developed and developing world

Enflasyon Ve Ekonomi̇k Büyüme: Oecd Ülkeleri̇ İçi̇n Di̇nami̇k Panel Eşi̇k Etki̇ Anali̇zi̇

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