Threshold effect of inflation on growth : evidence from mena region

الملخص EN

The nature of the relationship between inflation and growth is highlighted in the present study conducted for a set of nineteen MENA countries using annual data for the period [1961-2010].

A threshold effect is detected empirically through a negative and significant impact of inflation on growth above a threshold of about 10 percent.

To achieve this task, non-linearity of the relationship between inflation and growth is investigated through a dynamic panel threshold model.

Our results are comparable to empirical studies for developing countries.