期刊名称：South East European Journal of Economics and Business
印刷版ISSN：1840-118X
出版年度：2015
卷号：10
期号：2
页码：102-112
DOI：10.1515/jeb-2015-0013
语种：English
出版社：Walter de Gruyter GmbH
摘要：Although, there is abundant research on the fiscal deficit-inflation relationship, little has been done to investigate the non-linear association between them, particularly in Africa. This study employs fixed-effects and GMM estimators to examine the non-linear relationship between deficits and inflation from 1999 to 2011 in 51 African economies, which are further grouped into high-inflation/low-income countries and moderate-inflation/middle-income countries. The results indicate that the deficit-inflation relationship is non-linear for the whole sample and sub-groups. For the whole sample, a percentage point increase in deficit results in a 0.25 percentage point increase in inflation rate, while the relationship becomes quantitatively greater once deficits reach 23% of GDP. The subsamples report different relationships. Although our results cannot be used as the base for generalization, we identify importance of grouping African countries according to their levels of inflation and/or income, rather than treating them as a homogeneous entity.
关键词：Fiscal deficits ; inflation ; Africa ; H30 ; H60
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