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Inflation and Economic Growth in the SADC: Some Panel Time-Series Evidence

Manoel Bittencourt, Renee van Eyden and Monaheng Seleteng
Authors registered in the RePEc Author Service: Manoel Bittencourt and Renee van Eyden ()

No 404, Working Papers from Economic Research Southern Africa

Abstract: In this paper we investigate the role of inflation rates in determining economic growth in fifteen sub-Saharan African countries, which are all members of the Southern African Development Community (SADC), between 1980 and 2009. The results, based on panel time-series data and analysis, suggest that inflation has had a detrimental effect to growth in the region. All in all, we highlight not only the fact that inflation has o¤set the prospective Mundell-Tobin effect and consequently reduced, the much needed, economic activity in the region, but also the importance of an institutional framework conducive to a stable macroeconomic environment as a precondition for development and prosperity in the community.

Keywords: Inflation; Growth; SADC (search for similar items in EconPapers)
JEL-codes: E31 O11 O42 O55 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2014
New Economics Papers: this item is included in nep-afr, nep-gro and nep-mac
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Working Paper: Inflation and Economic Growth in the SADC: Some Panel Time-Series Evidence (2013) Downloads
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