EconPapers    
Economics at your fingertips  
 

On Nonlinear Relationship between Inflation and Economic Growth: A Study of ASEAN-5 Countries Period 2000–2016

Ambar Galih () and Sugiharso Safuan ()
Additional contact information
Ambar Galih: Department of Economics, Faculty of Economics dan Business, Universitas Indonesia
Sugiharso Safuan: Department of Economics, Faculty of Economics dan Business, Universitas Indonesia

Economics and Finance in Indonesia, 2017, vol. 63, 1-12

Abstract: Money (inflation) has played a vital role in economic growth. However, the nexus between them has always drawn mesmerizing debates. From the thoughts of Classical and Keynes which argued the existence of money neutrality, to the level of empirical studies which find either positive or negative correlation between inflation and economic growth. Recent studies concerning the debatable relationship have evolved it into a hypothesis whether the relation is nonlinear with a threshold or a point where the link switches. This study aims to re-examine the causality between inflation and economic growth in ASEAN-5 countries period 2000Q1–2016Q4. The results based on Threshold Vector Autoregression model indicate the presence of a nonlinear relationship between the two variables.

Keywords: threshold; inflation; economic growth; threshold VAR (search for similar items in EconPapers)
JEL-codes: E30 E31 E5 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.lpem.org/repec/lpe/efijnl/201701.pdf (application/pdf)

Related works:
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:lpe:efijnl:201701

Access Statistics for this article

More articles in Economics and Finance in Indonesia from Faculty of Economics and Business, University of Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Muhammad Halley Yudhistira ().

 
Page updated 2018-05-26
Handle: RePEc:lpe:efijnl:201701