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Inflation and economic growth in Cote d'Ivoire

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  • Konan Leon N'dri

    (UFR of Economics and Management, University Félix Houphouet Boigny, Abidjan, Côte d’Ivoire.)

Abstract

This paper investigates the relationships between inflation and economic growth in Cote d’Ivoire and makes some policy recommendations. The study uses annual data on economic growth and inflation over the period 1985 to 2010 and tests for the long-run and short-run relationships between inflation and economic growth by means of the ARDL bounds testing procedure. The findings are twofold. First, inflation imparts a positive and significant economic growth in the long-run. Second, in the short-run, inflation has a negative but insignificant effect on economic growth. Finally, to gain advantage from inflation, policy makers should target inflation at a level which is conducive to economic growth and promote economic growth through factors such as employment. Classification JEL: E00; E31;O40

Suggested Citation

  • Konan Leon N'dri, 2017. "Inflation and economic growth in Cote d'Ivoire," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 5(2), pages 39-44, April.
    • Handle: RePEc:lrc:lareco:v:5:y:2017:i:2:p:39-44
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    inflation; economic growth; ARDL; Côte d’Ivoire;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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