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Egypt's Inflation determinants An Empirical Study
- Source :
- Maǧallaẗ Al-Buḥūṯ Al-Mālīyyaẗ wa Al-Tiğāriyyaẗ, Vol 24, Iss 1, Pp 270-295 (2023)
- Publication Year :
- 2023
- Publisher :
- Faculty of Commerce, Port Said University, 2023.
-
Abstract
- The study analyzes the impact of a number of macroeconomics factors, which represent both sides of supply and demand, on Egypt's inflation rate during a specific time frame (1990-2022). This study examined whether the exchange rate, lending interest rates, monetary supply, and investment effect Egypt's Inflation symmetrically or asymmetrically. Semi-annual data was analyzed using Nonlinear Autoregressive Distributed Lag (NARDL) econometric method. The study's findings, Egypt's local currency devaluation negatively affects long-term and short-term inflation. Results also show that negative shocks to lending interest rates are insignificant in long and short - run. Findings also show illiterate that positive shocks to lending rates have negative long-term impacts on inflation and positive short-term one. Money’s negative effect on inflation suggests that Egypt's long-term and short-term inflation is caused by other variables. The research also showed that positive shocks to gross fixed capital formation lower long-term inflation. Short run negative shocks were insignificant, Inflation decreases as Egypt's gross fixed capital formation rises. Long-term inflation rates would drop with increased government spending, the data showed. The results indicated that government spending increases would result in a long-term decline in inflation rates.
Details
- Language :
- Arabic, English
- ISSN :
- 20905327 and 26823543
- Volume :
- 24
- Issue :
- 1
- Database :
- Directory of Open Access Journals
- Journal :
- Maǧallaẗ Al-Buḥūṯ Al-Mālīyyaẗ wa Al-Tiğāriyyaẗ
- Publication Type :
- Academic Journal
- Accession number :
- edsdoj.bfc24db5dfae47dd86769f928903b000
- Document Type :
- article
- Full Text :
- https://doi.org/10.21608/jsst.2023.198503.1577