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

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Manoel Bittencourt & Renee van Eyden & Monaheng Seleteng, 2013. "Inflation and Economic Growth in the SADC: Some Panel Time-Series Evidence," Working Papers 201354, University of Pretoria, Department of Economics.
  • Handle: RePEc:pre:wpaper:201354
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    Keywords

    In?ation; Growth; SADC;

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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