Inflation and Growth: The Role of Institutions

Hakan Yilmazkuday

No 2119, Working Papers from Florida International University, Department of Economics

Abstract: This paper investigates the effects of inflation on per capita income growth for 36 developed and developing countries by using structural vector autoregression models that are robust to the consideration of endogeneity by construction. The results show evidence for heterogeneity of such effects across countries that are shown to be further connected to the strength of their institutions. While the effects of inflation on growth are negative and significant in countries with stronger institutions, they are positive and significant in countries with weaker institutions.

Keywords: Economic Growth; Institutions; Inflation; Structural VAR (search for similar items in EconPapers)
JEL-codes: O11 O23 O43 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2021-09
New Economics Papers: this item is included in nep-cwa, nep-fdg, nep-gro, nep-mac and nep-mon
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https://economics.fiu.edu/research/pdfs/2021_working_papers/21191.pdf First version, 2021 (application/pdf)

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Journal Article: Inflation and growth: the role of institutions (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:2119

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