Omay, TolgaVan Eyden, ReneeGupta, Rangan2018-05-032018-05Omay, T., van Eyden, R. & Gupta, R. Inflation–growth nexus: evidence from a pooled CCE multiple-regime panel smooth transition model. Empirical Economics (2018) 54: 913-944, https://doi.org/10.1007/s00181-017-1237-2.0377-7332 (print)1435-8921 (online)10.1007/s00181-017-1237-2http://hdl.handle.net/2263/64769This paper analyses the empirical relationship between inflation and growth using a panel data estimation technique, multiple-regime panel smooth transition regression, which takes into account the nonlinearities in the data. By using a panel data set for 10 countries in the Southern African Development Community permitting us to control for unobserved heterogeneity at both country and time levels, we find that a statistically significant negative relationship exists between inflation and growth for inflation rates above the critical threshold levels of 12 and 32% which are endogenously determined. Furthermore, we remedy the cross-section dependence with the common correlated effects estimator.en© Springer-Verlag Berlin Heidelberg 2017. The original publication is available at : https://link.springer.com/journal/181.InflationGrowthThreshold effectsCross-section dependenceThreshold autoregressive modelLeast-squares estimatorUnit rootHeterogeneous panelRegression approachEconomic growthTax evasionInferenceMultiple-regime panel smooth transition regression (MR-PSTR)Southern African Development Community (SADC)Common correlated effects (CCE)Postprint Article