Is inflation a growth killer? Evidence from sub-Saharan Africa

Abstract

This paper examines the impact of ination on economic growth in Sub-Saharan Africa in order to provide an empirical evidence whether ination hinders or boost economic activities in the region. The paper found that ination exhibits a reducing-growth effect in both short-term and long-term periods using Panel Autoregressive Distributed Lag (PARDL) model. Therefore, the study recommends that African government needs to address the issues of ination especially imported ination in order to stimulate sustainable economic growth in the region. In addition, strengthening political commitment to ensure conducive business environment has to be paramount rather than depending on the traditional model of bring your own infrastructure.

Keywords: Ination, Sub-Sahara Africa, Panel Autoregressive Distributed Lag