Nonlinear Relation between Inflation and Economic Growth: Evidence from China

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Abstract:

By using the quarterly data of CPI and GDP in China from 1992 to 2011, this paper builds a smooth transition regression (STR) model to study the nonlinear relation between inflation and economic growth. The results show that there exist two-way Granger causality relations between inflation and economic growth, and inflation has significant nonlinear impacts to economic growth.

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Periodical:

Advanced Materials Research (Volumes 468-471)

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2215-2218

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February 2012

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© 2012 Trans Tech Publications Ltd. All Rights Reserved

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