The Impact of Inflation on Investment: The Non-Linear Nexus and Inflation Threshold in Jordan

Noura Abu Asab () and Alaaeddin Al-Tarawneh

Modern Applied Science, 2018, vol. 12, issue 12, 113

Abstract: This paper highlights the nonlinear relationship between inflation and investment in Jordan. Applying a threshold model over the period 1980-2016, the results reveal that investment is retracted by inflation when inflation rate reaches a threshold of 10%. This suggests that inflation rates should remain below 10% to sustain and improve investment levels.

Date: 2018
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