Authors: Ibrahim Dolapo Raheem; Mutiu Abimbola Oyinlola
Addresses: Department of Economics, University of Ibadan, Nigeria ' Department of Economics, University of Ibadan, Nigeria
Abstract: The study examined a nonlinear relationship between inflation and growth through financial development using data for Nigeria, Ghana and Cote d'Ivoire for periods between 1970 and 2010. The threshold value of inflation that could ensure positive association in the finance-growth nexus was empirically determined. Our results confirmed the existence of threshold with estimates that suggest that the threshold level of inflation is between 5% and 10% per annum for Ghana, and 15% per annum for Nigeria and Cote d'Ivoire.
Keywords: inflation; financial development; threshold value; economic growth; West Africa; Nigeria; Ghana; Cote d'Ivoire.
International Journal of Sustainable Economy, 2015 Vol.7 No.2, pp.91 - 99
Received: 05 Jul 2014
Accepted: 18 Sep 2014
Published online: 30 Mar 2015 *