Inflation and economic growth : evidence from the Southern African Development Community
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Date
Authors
Bittencourt, Manoel
Van Eyden, Renee
Seleteng, Monaheng
Journal Title
Journal ISSN
Volume Title
Publisher
Wiley
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 (we use the Fixed Effects and Fixed Effects with Instru- mental Variables estimators to account for heterogeneity and endo- geneity in thin panels), suggest that inflation has had a detrimental effect to growth in the community. We highlight that in ation has offset the Mundell-Tobin effect and consequently reduced the much needed economic activity in the community, and also the importance of an institutional framework conducive to a stable macroeconomic environment as a precondition for development and prosperity in the community
Description
Keywords
Inflation, Growth, Southern African Development Community (SADC), Economic growth
Sustainable Development Goals
Citation
Bittencourt, M, Van Eyden, R & Seleteng, M 2015, 'Inflation and economic growth : evidence from the Southern African Development Community', South African Journal of Economics, vol. 83, no. 3, pp. 411-424.