IDEAS home Printed from https://ideas.repec.org/a/vrs/mjsosc/v8y2017i6p171-182n18.html
   My bibliography  Save this article

Investigating the Causal Relationship between Inflation and Trade Openness using Toda–Yamamoto Approach: Evidence from Zambia

Author

Listed:
  • Zombe Chibvalo
  • Daka Lincoln
  • Phiri Christopher

    (Department of Economics, Copperbelt University, Kitwe, Zambia)

  • Kaonga Oliver
  • Seshamani Venkatesh

    (Department of Economics, University of Zambia, Lusaka, Zambia)

  • Chibwe Francis

    (Rural Electrification Authority, Lusaka, Zambia)

Abstract

The paper examines whether a significant relationship exists between inflation and trade openness in Zambia over the period 1985 to 2015. We use the Toda-Yamamoto approach to Granger causality to test for a causal relationship between inflation and trade openness. The results establish a bi-directional causality between inflation and trade openness. Further, there exists a positive relationship between inflation and trade openness in Zambia. Our findings stress the importance for central banks to understand the consequences of international trade for domestic inflation.

Suggested Citation

  • Zombe Chibvalo & Daka Lincoln & Phiri Christopher & Kaonga Oliver & Seshamani Venkatesh & Chibwe Francis, 2017. "Investigating the Causal Relationship between Inflation and Trade Openness using Toda–Yamamoto Approach: Evidence from Zambia," Mediterranean Journal of Social Sciences, Sciendo, vol. 8(6), pages 171-182, November.
    • Handle: RePEc:vrs:mjsosc:v:8:y:2017:i:6:p:171-182:n:18
    DOI: 10.1515/mjss-2017-0054
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/mjss-2017-0054
    Download Restriction: no
    File URL: https://libkey.io/10.1515/mjss-2017-0054?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
    ---><---

    Citations

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


    Cited by:

    1. Jelilov Gylych & Abdullahi Ahmad Jbrin & Bilal Celik & Abdurrahman Isik, 2020. "The Effect of Oil Price Fluctuation on the Economy of Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 461-468.
    2. Yuanyuan Hao, 2023. "The dynamic relationship between trade openness, foreign direct investment, capital formation, and industrial economic growth in China: new evidence from ARDL bounds testing approach," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.
    3. Francis Obeng Afari & Jong Chil Son & Horlali Yaw Haligah, 2021. "Empirical analysis of the relationship between openness and inflation: a case study of sub-Saharan Africa," SN Business & Economics, Springer, vol. 1(6), pages 1-23, June.
    4. Alimi, R. Santos & Olorunfemi, Sola, 2018. "Does Inflation Uncertainty Matter for Validity of Romer’s Hypothesis? Evidence from Nigeria," MPRA Paper 90948, University Library of Munich, Germany.
    5. Rahman, Mohammad Mafizur & Alam, Khosrul, 2021. "Clean energy, population density, urbanization and environmental pollution nexus: Evidence from Bangladesh," Renewable Energy, Elsevier, vol. 172(C), pages 1063-1072.
    6. Sameer Mostafa Abumdallala, 2019. "The Relationship Between Imports and Inflation in Palestine: Toda and Yamamoto Causality Analysis," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 10(2), pages 17-21, March.
    7. Jeffrey Kouton, 2018. "An Asymmetric Analysis of the Relationship between Openness and Inflation in C te d'Ivoire," International Journal of Economics and Financial Issues, Econjournals, vol. 8(6), pages 65-75.

    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:vrs:mjsosc:v:8:y:2017:i:6:p:171-182:n:18. 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    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.