IDEAS home Printed from https://ideas.repec.org/a/mbr/jmbres/v9y2016i27p83-108.html
   My bibliography  Save this article

Political Stability and Inflation Rate Nexus in Selected MENA Countries (in Persian)

Author

Listed:
  • heidari, hassan

    (urmia university)

  • asghari, rana

    (urmia university)

  • alinejad, roghayyeh

    (urmia university)

Abstract

The present study investigates the potential threshold effects in the relationship between political stability index and inflation rate for 16 countries from MENA countries with presence of other variables, including GDP growth, government consumption expenditures growth, liquidity and openness index over the period 1996-2014. For this purpose, the paper uses the Panel Smooth Transition Regression (PSTR) model. The estimation results of model reject the linearity hypothesis, and estimate a continuous transition function with two regimes that gives a threshold at political stability of 0.756 for under review countries. Moreover the study results indicate political stability index, GDP growth and openness index have a negative impact on inflation rate that their impacts are increased in the values above a threshold is calculated for political stability. The other results indicate that the influencing coefficients of the government consumption expenditures growth and liquidity variables are positive and significant in two regimes. Though, their impacts are declined in second regime. In general, the results of this study confirm the results of many done studies about positive effects of government consumption expenditure growth and liquidity and also negative effects of political stability index, GDP growth and openness index on inflation rate.

Suggested Citation

  • heidari, hassan & asghari, rana & alinejad, roghayyeh, 2016. "Political Stability and Inflation Rate Nexus in Selected MENA Countries (in Persian)," Journal of Monetary and Banking Research (فصلنامه پژوهش‌های پولی-بانکی), Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 9(27), pages 83-108, April.
    • Handle: RePEc:mbr:jmbres:v:9:y:2016:i:27:p:83-108
    as

    Download full text from publisher

    File URL: http://jmbr.mbri.ac.ir/article-1-387-en.pdf
    Download Restriction: no
    File URL: http://jmbr.mbri.ac.ir/article-1-387-en.html
    Download Restriction: no
    File URL: http://jmbr.mbri.ac.ir/article-1-387-fa.html
    Download Restriction: no
    ---><---

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mbr:jmbres:v:9:y:2016:i:27:p:83-108. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: M. E. (email available below). General contact details of provider: https://edirc.repec.org/data/mbcbiir.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.