IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-14-00870.html
   My bibliography  Save this article

Bootstrap causality between inflation uncertainty and output growth uncertainty in selected African countries

Author

Listed:
  • Arcade Ndoricimpa

    (Department of Economics, University of Dar Es Salaam, Tanzania)

Abstract

The study examines the causal relationship between inflation uncertainty and output growth uncertainty for selected African countries. Asymmetric BEKK GARCH-M model is used to derive measures of uncertainty for inflation and output growth, and bootstrap causality testing approach is used to examine the causal links between them. The findings suggest that Logue and Sweeney (1981) hypothesis and Devereux (1989) hypothesis are supported for Algeria and South Africa; a trade-off hypothesis of Taylor (1981) and Fuhrer (1997) is supported for Gabon, Libya and Tunisia; no causality whatsoever is found for Congo Republic and Nigeria, while for Libya and Tunisia, inflation uncertainty does not affect output growth uncertainty. Further studies are needed to shed more light on the relationship between these important macroeconomic variables for African countries which are still under-researched.

Suggested Citation

  • Arcade Ndoricimpa, 2014. "Bootstrap causality between inflation uncertainty and output growth uncertainty in selected African countries," Economics Bulletin, AccessEcon, vol. 34(4), pages 2151-2164.
  • Handle: RePEc:ebl:ecbull:eb-14-00870
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2014/Volume34/EB-14-V34-I4-P197.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Scott Hacker & Abdulnasser Hatemi‐J, 2012. "A bootstrap test for causality with endogenous lag length choice: theory and application in finance," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 39(2), pages 144-160, May.
    2. repec:awi:wpaper:0475 is not listed on IDEAS
    3. Logue, Dennis E & Sweeney, Richard James, 1981. "Inflation and Real Growth: Some Empirical Results: A Note," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 13(4), pages 497-501, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Okumus, Fevzi & Kocak, Emrah, 2023. "Tourism and economic output: Do asymmetries matter?," Annals of Tourism Research, Elsevier, vol. 100(C).
    2. Gregory D. Hess & Charles S. Morris, 1996. "The long-run costs of moderate inflation," Economic Review, Federal Reserve Bank of Kansas City, vol. 81(Q II), pages 71-88.
    3. Mübariz Hasanov & Tolga Omay, 2011. "The Relationship Between Inflation, Output Growth, and Their Uncertainties: Evidence from Selected CEE Countries," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 47(0), pages 5-20, July.
    4. Khan, Muhammad, 2016. "Evidence on the functional form of inflation and output growth variability relationship in European economies," International Economics, Elsevier, vol. 146(C), pages 1-11.
    5. Shakoor Ahmed & Khorshed Alam & Afzalur Rashid & Jeff Gow, 2020. "Militarisation, Energy Consumption, CO2 Emissions and Economic Growth in Myanmar," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(6), pages 615-641, August.
    6. Gunay, Samet, 2020. "Seeking causality between liquidity risk and credit risk: TED-OIS spreads and CDS indexes," Research in International Business and Finance, Elsevier, vol. 52(C).
    7. Yilanci, Veli & Kilci, Esra N., 2021. "The role of economic policy uncertainty and geopolitical risk in predicting prices of precious metals: Evidence from a time-varying bootstrap causality test," Resources Policy, Elsevier, vol. 72(C).
    8. Muntasir Murshed & Mohamed Elheddad & Rizwan Ahmed & Mohga Bassim & Ei Thuzar Than, 2022. "Foreign Direct Investments, Renewable Electricity Output, and Ecological Footprints: Do Financial Globalization Facilitate Renewable Energy Transition and Environmental Welfare in Bangladesh?," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 29(1), pages 33-78, March.
    9. Richard J. Sweeney, 1991. "Outlook For The European Monetary Union: The Message From Eastern Europe," Contemporary Economic Policy, Western Economic Association International, vol. 9(4), pages 20-38, October.
    10. Fousekis, Panos & Katrakilidis, Constantinos & Trachanas, Emmanouil, 2016. "Vertical price transmission in the US beef sector: Evidence from the nonlinear ARDL model," Economic Modelling, Elsevier, vol. 52(PB), pages 499-506.
    11. Tsvetomir Tsvetkov & Sonya Georgieva, 2022. "Inflation, Inflation Instability and Nominal Uncertainty in Bulgarian Economy," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 8, pages 41-64.
    12. Perekunah B. Eregha & Arcade Ndoricimpa, 2019. "Inflation, Output Growth and their Uncertainties: A Multivariate GARCH-M Modeling Evidence for Nigeria," Research Africa Network Working Papers 19/060, Research Africa Network (RAN).
    13. Hummera Saleem & Malik Shahzad Shabbir & Syed Ali Raza Shah & Jalal Shah, 2021. "Nexus between Foreign Direct Investment and Poverty Reduction: A case of Pakistans," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 3(3), pages 272-280, December.
    14. Sarmiento, Julio & Cayon, Edgardo & Collazos, María & Sandoval, Juan S., 2017. "Positive asymmetric information in volatile environments: The black market dollar and sovereign bond yields in Venezuela," Research in International Business and Finance, Elsevier, vol. 41(C), pages 547-555.
    15. Muhammad Khan, 2013. "Inflation and Sectoral Output Growth Variability in Bulgaria," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 55(4), pages 687-704, December.
    16. Abdulnasser Hatemi-J & Abdulrahman Al Shayeb & Eduardo Roca, 2017. "The effect of oil prices on stock prices: fresh evidence from asymmetric causality tests," Applied Economics, Taylor & Francis Journals, vol. 49(16), pages 1584-1592, April.
    17. Gülbahar ÜÇLER, 2016. "Testing the relationship between military spending and private investments: Evidence from Turkey," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(608), A), pages 307-318, Autumn.
    18. Korhan Gokmenoglu & Siamand Hesami, 2019. "Real estate prices and stock market in Germany: analysis based on hedonic price index," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 12(4), pages 687-707, April.
    19. Wilson, Bradley Kemp, 2006. "The links between inflation, inflation uncertainty and output growth: New time series evidence from Japan," Journal of Macroeconomics, Elsevier, vol. 28(3), pages 609-620, September.
    20. Francis W. Ahking & Stephen M. Miller, 1988. "Models of Business Cycles: A Review Essay," Eastern Economic Journal, Eastern Economic Association, vol. 14(2), pages 197-202, Apr-Jun.

    More about this item

    Keywords

    Inflation Uncertainty; Output Growth Uncertainty; Bootstrap Causality; Africa;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E1 - Macroeconomics and Monetary Economics - - General Aggregative Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-14-00870. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.