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Inflation and Economic Growth in the SADC: Some Panel Time-Series Evidence

  • Manoel Bittencourt

    ()

    (Department of Economics, University of Pretoria)

  • Renee van Eyden

    ()

    (Department of Economics, University of Pretoria)

  • Monaheng Seleteng

    ()

    (Department of Economics, University of Pretoria)

In this paper we investigate the role of inflation rates in determining economic growth in fifteen sub-Saharan African countries, which are all members of the Southern African Development Community (SADC), between 1980 and 2009. The results, based on panel time-series data and analysis, suggest that inflation has had a detrimental effect to growth in the region. All in all, we highlight not only the fact that inflation has offset the Mundell-Tobin effect and consequently reduced, the much needed, economic activity in the region, but also the importance of an institutional framework conducive to a stable macroeconomic environment as a precondition for development and prosperity in the community.

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Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number 201354.

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Length: 21 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:pre:wpaper:201354
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  19. Seleteng, Monaheng & Bittencourt, Manoel & van Eyden, Reneé, 2013. "Non-linearities in inflation–growth nexus in the SADC region: A panel smooth transition regression approach," Economic Modelling, Elsevier, vol. 30(C), pages 149-156.
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