Scopus
🔓 Açık Erişim YÖKSİS Eşleşti
Revisiting inflation and growth nexus in Bangladesh: An asymmetric cointegration based on non-linear ARDL approach
Revista Finanzas Y Politica Economica · Eylül 2021
YÖKSİS Kayıtları
Revisiting inflation and growth nexus in Bangladesh: An asymmetric cointegration based on non-linear ARDL approach
Revista Finanzas y Politica Economica · 2021 ESCI, SCOPUS, EBSCO
PROFESÖR HAKAN ACET →
Makale Bilgileri
DergiRevista Finanzas Y Politica Economica
Yayın TarihiEylül 2021
Cilt / Sayfa13 · 371-402
Scopus ID2-s2.0-85118929876
Erişim🔓 Açık Erişim
Özet
Sustainable high economic growth is the major objective of a country. In contrast, inflation is a critical issue that alters economic development. For this, the growth-inflation nexus is one of the most controversial topics in this present world. This study re-investigates the link between inflation and the economic development of Bangladesh by applying a nonlinear autoregressive distributed lagged (NARDL) method. We utilize yearly time series data set on the growth rate of per capita GDP and the inflation rate for the time range from 1986 to 2017. Based on the NARDL approach, the asymmetric cointegration result confirms, between the GDP growth and inflation rates (CPI), a long-run integration exists. Between growth rate and inflation rate, the study finds a positive and robust nexus both in the long-run and in the short-run with statistically significant results. This study further explores an asymmetric relationship between the rate of inflation and the rate of economic growth. The nonlinear ARDL approach shows that the GDP growth rate responds more with an upward change in inflation than a downward change. Furthermore, the positive change in inflations has a significant and positive influence on the growth rate in the short run. Still, the effect of an adverse change in inflations has statistically insignificant. Both the policymakers of Bangladesh (Bangladesh Bank) and development partners working in the country can be benefited from these results in the context of policy implementation. To boost the economic growth in the context of Bangladesh, this study recommends that a moderate inflation rate can be treated as a significant determination.
Yazarlar (4)
1
Mohammed Akter Hossain
ORCID: 0000-0001-7637-0110
2
Hakan Acet
ORCID: 0000-0003-4314-8657
3
Zobayer Ahmed
ORCID: 0000-0002-3168-6055
4
Alauddin Majumder
ORCID: 0000-0002-3805-7956
Anahtar Kelimeler
Asymmetric co-integration
Bangladesh
Economic growth
Inflation
Non-linear Autoregressive Distributed Lagged (NARDL) Model
Kurumlar
International Islamic University Chittagong
Dhaka Bangladesh
Selçuk Üniversitesi
Selçuklu Turkey
University of Chittagong
Chittagong Bangladesh
Metrikler
7
Atıf
4
Yazar
5
Anahtar Kelime