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The short and long-run dynamics between inflation and economic growth in BRICS

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  • Nimantha Manamperi

Abstract

The short-run and long-run dynamics between the inflation and economic growth is one of the prominent debates in the economics literature. This article investigates the short- and long-run relationships between the inflation and economic growth in BRICS (Brazil, Russia, India, China and South Africa) over the last three decades. The Johansen cointegration and the autoregressive distributed lag model (ARDL) bound test were used for the long-run relationship, and a VAR analysis sheds light on the short-run dynamics. The results found a positive long-run relationship between inflation and economic growth for India but no long-run relationship in other four countries. A significant negative short-run relationship is found for Brazil, Russia, China and South Africa while a positive short-run relationship is found for India.

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  • Nimantha Manamperi, 2014. "The short and long-run dynamics between inflation and economic growth in BRICS," Applied Economics Letters, Taylor & Francis Journals, vol. 21(2), pages 140-145, January.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:2:p:140-145
    DOI: 10.1080/13504851.2013.844318
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    References listed on IDEAS

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    1. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    2. Graeme S. Dorrance, 1966. "Inflation and Growth: The Statistical Evidence (Inflation et croissance: la preuve statistique) (Inflación y crecimiento: la comprobación estadística)," IMF Staff Papers, Palgrave Macmillan, vol. 13(1), pages 82-102, March.
    3. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
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    1. KARGI, Bilal, 2014. "The Effects of BRICS and MATIK Countries on World Economy and Cointegration Analysis The Long Term Relation G-7 Growth Rates (1962-2012)," MPRA Paper 55693, University Library of Munich, Germany.
    2. Ayfer Ozyilmaz, 2022. "Relationship Between Inflation and Economic Growth in EU Countries," Journal of Economic Policy Researches, Istanbul University, Faculty of Economics, vol. 9(2), pages 425-438, July.
    3. Mavikela Nomahlubi & Mhaka Simba & Phiri Andrew, 2019. "The Inflation-Growth Relationship in SSA Inflation-Targeting Countries," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 64(2), pages 84-102, August.
    4. Bilal KARGI, 2014. "The Effects of BRICS and MATIK Counties on world Economy and Cointegration Analysis the Long Term relation With G-7 Growth Rates (1962-2012)," Journal of Economics and Behavioral Studies, AMH International, vol. 6(3), pages 262-272.
    5. Rasha Istaiteyeh & Farah Najem, 2023. "GDP and Inflation: New Story from a Developing World: Case of Jordan," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(6), pages 1-2.
    6. Syriopoulos, Theodore & Makram, Beljid & Boubaker, Adel, 2015. "Stock market volatility spillovers and portfolio hedging: BRICS and the financial crisis," International Review of Financial Analysis, Elsevier, vol. 39(C), pages 7-18.
    7. Manamperi, Nimantha, 2016. "Does military expenditure hinder economic growth? Evidence from Greece and Turkey," Journal of Policy Modeling, Elsevier, vol. 38(6), pages 1171-1193.
    8. Gideon Minua Kwaku Ampofo & Prosper Basommi Laari & Emmanuel Opoku Ware & Williams Shaw, 2023. "Further investigation of the total natural resource rents and economic growth nexus in resource-abundant sub-Saharan African countries," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 97-121, January.
    9. Gadhoum, Anouar & Masih, Mansur, 2018. "Emerging market equities and US policy uncertainty: evidence from Malaysia based on ARDL," MPRA Paper 105469, University Library of Munich, Germany.
    10. Alexander William Salter & Thomas L. Hogan, 2019. "Expectations and NGDP Targeting: Supply-Side Problems with Demand-Side Policy," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 34(Fall 2019), pages 89-106.

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