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Threshold Effect of Inflation on Growth: Evidence from MENA Region

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  • Samir Ghazouani

    (University of Carthage)

Abstract

The nature of the relationship between inflation and growth is highlighted in the present study conducted for a set of nineteen MENA countries using annual data for the period [1961-2010]. A threshold effect is detected empirically through a negative and significant impact of inflation on growth above a threshold of about 10 percent. To achieve this task, non-linearity of the relationship between inflation and growth is investigated through a dynamic panel threshold model. Our results are comparable to empirical studies for developing countries.

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  • Samir Ghazouani, 2012. "Threshold Effect of Inflation on Growth: Evidence from MENA Region," Working Papers 715, Economic Research Forum, revised 2012.
    • Handle: RePEc:erg:wpaper:715
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    References listed on IDEAS

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