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Does the Level of Inflation Matter in the Inflation-Growth Nexus in Ghana?

Author

Listed:
  • Prempeh, Kwadwo Boateng
  • Kyeremeh, Kwadwo
  • Peprah-Amankona, Godfred

Abstract

The study uses a threshold regression model to provide new evidence that the deleterious effects of inflation on growth only “kick in” once inflation hits a certain level. Until then, inflation is beneficial to growth.

Suggested Citation

  • Prempeh, Kwadwo Boateng & Kyeremeh, Kwadwo & Peprah-Amankona, Godfred, 2022. "Does the Level of Inflation Matter in the Inflation-Growth Nexus in Ghana?," MPRA Paper 112738, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:112738
    as

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    File URL: https://mpra.ub.uni-muenchen.de/112867/9/MPRA_paper_112867.pdf
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    References listed on IDEAS

    as
    1. Eggoh, Jude C. & Khan, Muhammad, 2014. "On the nonlinear relationship between inflation and economic growth," Research in Economics, Elsevier, vol. 68(2), pages 133-143.
    2. Bruce E. Hansen, 2000. "Sample Splitting and Threshold Estimation," Econometrica, Econometric Society, vol. 68(3), pages 575-604, May.
    3. Joseph Magnus Frimpong & Eric Fosu Oteng-Abayie, 2010. "When is Inflation Harmful? Estimating the Threshold Effect for Ghana," American Journal of Economics and Business Administration, Science Publications, vol. 2(3), pages 232-239, September.
    4. Vinayagathasan, Thanabalasingam, 2013. "Inflation and economic growth: A dynamic panel threshold analysis for Asian economies," Journal of Asian Economics, Elsevier, vol. 26(C), pages 31-41.
    5. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    6. Bick, Alexander, 2010. "Threshold effects of inflation on economic growth in developing countries," Economics Letters, Elsevier, vol. 108(2), pages 126-129, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inflation; economic growth; threshold; Ghana;
    All these keywords.

    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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