Author/Authors :
AYDIN, Celil Muş Alparslan Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İktisat Bölümü, Turkey , AKINCI, Merter Ordu Üniversitesi - Ünye İktisadi ve İdari Bilimler Fakültesi - İktisat Bölümü, Turkey , YILMAZ, Ömer Atatürk Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - Ekonometri Bölümü, Turkey
Title Of Article :
WHEN DOES INFLATION HINDER THE DYNAMISM OF ECONOMIC GROWTH? A DYNAMIC PANEL THRESHOLD MODEL UPON EMERGING MARKETS
Abstract :
In this study, the role of inflation threshold level in the relationship between inflation and economic growth has been investigated for 24 emerging market countries in period 1980-2013. Firstly, inflation threshold value has been detected and then inflation-economic growth relation has been examined using dynamic panel threshold model. The findings provide evidence that there is a non-linear relationship between inflation and economic growth in the countries under study. Besides, inflation has a statistically significant and positive effect on economic growth below the threshold level while significant and negative effect above the threshold level. In this context, it is important to achieve sustainable growth, which plays a vital role in enhancing the effectiveness of implemented monetary policies and assuring stability. Therefore, decision and policy makers need to take into account the threshold level of inflation in context of monetary policy while determining the target inflation rate against fighting inflation in the mentioned countries.
NaturalLanguageKeyword :
Economic Growth , Inflation , Threshold Value , Dynamic Panel Threshold Mode
JournalTitle :
Journal Of Economics and Administrative Sciences
