تقدير عتبة التضخم في ليبيا

Abstract EN

The objective of this Study is to estimate the relationship between inflation and Economic Growth and to determine threshold of Inflation in Libyan economy for the period of (1980-2010).

The Study applied Ordinary Least Squares and Sensitivity Analysis.

The results show an existence of negative relationship between inflation and economic Growth, while the threshold of inflation estimation suggests that the threshold level of inflation is at 7 percent.

Inflation rate above this threshold level is harmful for output growth in the non-oil activities at the Libyan economy.

Also the results show that below threshold level ,the inflation doesn,t support economic growth.