EconPapers    
Economics at your fingertips  
 

Reexamining the relationship between inflation and growth: Do institutions matter in developing countries?

Raul Ibarra and Danilo Trupkin ()

Economic Modelling, 2016, vol. 52, issue PB, 332-351

Abstract: Using a large panel of countries during the period 1950–2009, we estimate the inflation thresholds above which its association with economic growth is expected to be negative, taking into account differences in institutions across countries. First, in line with previous literature, we find that the estimated threshold is substantially higher for developing countries compared to that of developed countries. However, we further show that the inflation threshold in developing economies falls when we consider reduced groups that exceed certain levels of institutional quality. We also find that the cost of inflation increases with the quality of institutions.

Keywords: Inflation; Economic growth; Threshold effects; Institutions (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999315002576
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The Relationship between Inflation and Growth. A Panel Smooth Transition Regression Approach for Developed and Developing Countries (2011) Downloads
Working Paper: The Relationship between Inflation and Growth:A Panel Smooth Transition Regression Approach for Developed and Developing Countries (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:52:y:2016:i:pb:p:332-351

DOI: 10.1016/j.econmod.2015.09.011

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2021-02-09
Handle: RePEc:eee:ecmode:v:52:y:2016:i:pb:p:332-351