IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v8y2020i1p1722306.html
   My bibliography  Save this article

In search of inflation limits for financial sector development in ECOWAS and SADC regions: A panel smooth transition analysis

Author

Listed:
  • Sulemana Mahawiya
  • Abraham Haim
  • Oteng-Abayie Eric Fosu
  • Christian Nsiah

Abstract

This study investigates a comparative study on the threshold effects of inflation on financial sector development (FSD) between the Economic Community of West African States (ECOWAS) and the Southern Africa Development Community (SADC) for the period 1980–2011. Using a novel panel smooth transition regression, our results suggest evidence of the existence of a robust single threshold of inflation in both regions. Particularly, it indicates 17.9% and 14.5% of inflation for ECOWAS and SADC, respectively, suggesting that inflation above these thresholds presents detrimental effects for financial development in both regions. The study therefore concludes that price stability policies with inflation targeting framework should be the primary objective in monetary policy since high inflation is economically costly to financial development in the two regions.

Suggested Citation

  • Sulemana Mahawiya & Abraham Haim & Oteng-Abayie Eric Fosu & Christian Nsiah, 2020. "In search of inflation limits for financial sector development in ECOWAS and SADC regions: A panel smooth transition analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1722306-172, January.
    • Handle: RePEc:taf:oaefxx:v:8:y:2020:i:1:p:1722306
    DOI: 10.1080/23322039.2020.1722306
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2020.1722306
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23322039.2020.1722306?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdoulganiour Almame Tinta & Salifou Ouedraogo & Noel Thiombiano, 2021. "Nexus between economic growth, financial development, and energy consumption in Sub‐Saharan African countries: A dynamic approach," Natural Resources Forum, Blackwell Publishing, vol. 45(4), pages 366-379, November.

    More about this item

    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:taf:oaefxx:v:8:y:2020:i:1:p:1722306. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    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.