Rational Expectations of Inflation and Augmented Philips Curve Hypothesis in Sub-saharan Africa: Evidence from Dynamic Panel Data Model

Domaine:

socioeconomic

Créateur:

ObeEdi

Éditeur:

Hôte:

The study focuses on how rational expectations influence augmented Philips curve hypothesis in sub-Saharan African countries using dynamic robust instrumental variable system Generalized Method of Moments (GMM) approach, with panel data from twenty-six countries in the region for the period 2009 to 2016. The two stage system GMM results show that with rational expectations on augmented Philips curve, the relationship between inflation and unemployment is positive and significant. When output gap is used as a proxy for unemployment in the model, the results reveal that the relationship between inflation and unemployment is negative but statistically insignificant. The findings suggest that the rational expectations of inflation on augmented Philips curve hypothesis are invalid in Sub-Sahara African countries. This lead to the recommendation that proper policy for the provision of enabling environment for ease of doing business to enhance productivity should be vigorously pursued in order to reduce inflation and unemployment rate.

Visit

doi.org

Similaires

Inflation Dynamics and Exchange Rate Pass-Through in Nigeria: Evidence from Augmented Nonlinear New Keynesian Philips CurveDataset for Institutional Quality and the Public Debt–Inflation Nexus in Sub-Saharan Africa: Evidence from Dynamic Panel System GMM AnalysisMIGRATION-TRADE NEXUS IN SUB-SAHARAN AFRICA: EVIDENCE FROM A DYNAMIC PANEL STUDYGovernance quality and economic growth in Sub-Saharan Africa: the dynamic panel modelElectricity Access and Agricultural Productivity in Sub-Saharan Africa: Evidence from Panel DataElectricity Fluctuations and Tax Revenue in Sub-Saharan Africa: Insights from a Bias-Corrected Linear Dynamic Panel Model

Inflation Dynamics and Exchange Rate Pass-Through in Nigeria: Evidence from Augmented Nonlinear New Keynesian Philips Curve

This paper estimates a nonlinear augmented New Keynesian Philips Curve for Nigeria using the Smooth

Dataset for Institutional Quality and the Public Debt–Inflation Nexus in Sub-Saharan Africa: Evidence from Dynamic Panel System GMM Analysis

This repository contains the panel dataset and associated files used to analyze the moderating role

MIGRATION-TRADE NEXUS IN SUB-SAHARAN AFRICA: EVIDENCE FROM A DYNAMIC PANEL STUDY

This study examines the impact of migration on trade in SSA region. We used the system generalized m

Governance quality and economic growth in Sub-Saharan Africa: the dynamic panel model

Purpose The main objective of this article is to analyze the role of governance quality in influenc

Electricity Access and Agricultural Productivity in Sub-Saharan Africa: Evidence from Panel Data

Electricity Fluctuations and Tax Revenue in Sub-Saharan Africa: Insights from a Bias-Corrected Linear Dynamic Panel Model

Inadequate electricity and its frequent fluctuations adversely affect the productivity and profits o