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Non-linéarité entre inflation et croissance économique : quels enseignements pour la zone BEAC ?

Author

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  • Itchoko Motande Mondjeli Mwa Ndjokou
  • Pierre Christian Tsopmo

Abstract

The purpose of this paper is to estimate the optimal inflation rate, defined as the threshold level below and above which inflation affects economic growth, from the experience of the BEAC. For this purpose, we use panel data over the period 1985-2013. Relying upon the estimation of Panel Smooth Transition Regression (PSTR) model inspired from González et al. (2005), our main findings are the following. (i) The optimal inflation rate is around 4.3 %. (ii) Below the threshold, an increase of 1% of inflation enhances growth by 0.28%. Over the threshold, a one percent increase in inflation leads to a reduction of 0.26% in growth. These results are robust with respect to sensitivity analyzes and GMM estimation. Codes JEL : E31 C23.

Suggested Citation

  • Itchoko Motande Mondjeli Mwa Ndjokou & Pierre Christian Tsopmo, 2017. "Non-linéarité entre inflation et croissance économique : quels enseignements pour la zone BEAC ?," Revue d’économie du développement, De Boeck Université, vol. 25(2), pages 41-62.
    • Handle: RePEc:cai:edddbu:edd_312_0041
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    Citations

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    Cited by:

    1. Jean C. Kouam & Simplice Asongu, 2022. "The non-linear effects of fixed broadband on economic growth in Africa," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 50(5), pages 881-895, August.
    2. Doho, Libaud Rudy Aurelien & Somé, Sobom Matthieu & Banto, Jean Michel, 2023. "Inflation and west African sectoral stock price indices: An asymmetric kernel method analysis," Emerging Markets Review, Elsevier, vol. 54(C).
    3. Djahini, Edém & Ayassou, Kokou, 2016. "Quel niveau de transformation économique pour réduire les inégalités de revenu en Afrique ? [What level of economic transformation for income inequality alleviation in Africa?]," MPRA Paper 74944, University Library of Munich, Germany.

    More about this item

    Keywords

    Inflation-growth relation; Optimal inflation threshold; PSTR model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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