Artikel
Threshold effect of inflation on economic growth in Nigeria
It is widely believed that price stability promote long-term economic growth, whereas high inflation is inimical to growth. This paper utilized a quarterly time series data for the period 1981 - 2009 to estimate a threshold level of inflation for Nigeria. Using a threshold regression model developed by Khan and Senhadji (2001), the study estimated a threshold inflation level of 13 per cent for Nigeria. Below the threshold level, inflation has a mild effect on economic activities, while above it, the magnitude of the negative effect of inflation on growth was high. The negative and significant relationship between inflation and economic growth for inflation rates both below and above the threshold level is robust with respect to changes in econometric methodology, additional explanatory variables and changes in data frequency. These finding are essential for monetary policy formulation as it provide a guide for the policy makers to choose an optimal target for inflation, which is consistent with long-term sustainable economic growth goals of the country.
- Sprache
-
Englisch
- Erschienen in
-
Journal: CBN Journal of Applied Statistics ; ISSN: 2476-8472 ; Volume: 03 ; Year: 2012 ; Issue: 1 ; Pages: 43-63 ; Abuja: The Central Bank of Nigeria
- Klassifikation
-
Wirtschaft
Price Level; Inflation; Deflation
Economic Growth and Aggregate Productivity: General
- Thema
-
Inflation
Growth
Threshold
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Bawa, Sani
Abdullahi, Ismaila S.
- Ereignis
-
Veröffentlichung
- (wer)
-
The Central Bank of Nigeria
- (wo)
-
Abuja
- (wann)
-
2012
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
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Objekttyp
- Artikel
Beteiligte
- Bawa, Sani
- Abdullahi, Ismaila S.
- The Central Bank of Nigeria
Entstanden
- 2012
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