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

10 January 2014
Publication Type: Working Paper
Keyword: Growth, Inflation, SADC
JEL Code: E31, O11, O42, O55

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 in‡ation 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.

Series title: Working paper 404
1 January 2014
Journal: South African Journal of Economics
10 February 2015
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