Threshold Relationships among Inflation, Financial Market Development and Growth
No 2000-04, School of Economics Working Papers from University of Adelaide, School of Economics
This paper tests for and estimates non-dynamic panel threshold relationships among inflation, financial market development and growth, where the relationship changes once a threshold level of inflation is reached. Robust statistical support of a single threshold value of inflation (about 14%) is found for this trivariate relationship. A strong positive relationship between growth and financial market development occurs before the threshold, and a strong negative relationship between growth and inflation occurs after the threshold. When an interaction variable between inflation and financial market development is introduced, the relationship between growth and inflation is significantly negative only before the threshold.
Keywords: thresholds; growth; financial markets; inflation; panel methods (search for similar items in EconPapers)
JEL-codes: C4 E5 E6 G2 (search for similar items in EconPapers)
Pages: 32 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:adl:wpaper:2000-04
Access Statistics for this paper
More papers in School of Economics Working Papers from University of Adelaide, School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Nicolas Groshenny ().