Accéder directement au contenu Accéder directement à la navigation
Article dans une revue

Inflation Effects on Finance-Growth Link: A Panel Smooth Threshold Approach

Abstract :

This paper proposes an original framework to examine whether the strength of the relationship between financial development and economic growth, widely documented in the recent empirical literature, varies with the inflation rate. Using a Panel Smooth Threshold Regression for 71 developed and developing countries over the period 1960–2004, we find a non-linear link between financial development and economic growth: three equilibriums are identified with inflation rate. Then, there is an inflation threshold, for which finance ceases to increase economic growth. Our results suggest that for an inflation rate higher than 20%, economic growth is not, or is negatively, affected by financial development, whereas the impact of finance on growth is positive and significant for an inflation level below 10%.

Type de document :
Article dans une revue
Liste complète des métadonnées

https://hal.univ-angers.fr/hal-03107295
Contributeur : Okina Université d'Angers Connectez-vous pour contacter le contributeur
Soumis le : mardi 12 janvier 2021 - 14:34:33
Dernière modification le : vendredi 5 février 2021 - 03:55:13

Identifiants

Collections

Citation

Comlanvi Eggoh. Inflation Effects on Finance-Growth Link: A Panel Smooth Threshold Approach. International Economic Journal, Taylor & Francis (Routledge), 2012, 26 (4), pp.711 - 725. ⟨10.1080/10168737.2011.631024⟩. ⟨hal-03107295⟩

Partager

Métriques

Consultations de la notice

18