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The Impact of Inflation on Investment: The Non-Linear Nexus and Inflation Threshold in Jordan

Author

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  • Noura Abu Asab
  • Alaaeddin Al-Tarawneh

Abstract

This paper highlights the nonlinear relationship between inflation and investment in Jordan. Applying a threshold model over the period 1980-2016, the results reveal that investment is retracted by inflation when inflation rate reaches a threshold of 10%. This suggests that inflation rates should remain below 10% to sustain and improve investment levels.

Suggested Citation

  • Noura Abu Asab & Alaaeddin Al-Tarawneh, 2018. "The Impact of Inflation on Investment: The Non-Linear Nexus and Inflation Threshold in Jordan," Modern Applied Science, Canadian Center of Science and Education, vol. 12(12), pages 113-113, December.
    • Handle: RePEc:ibn:masjnl:v:12:y:2022:i:12:p:113
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    References listed on IDEAS

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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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