Examining the causes of inflation in Kuwait: an application of a vector autoregression model

Al-Mutairi, Naief

doi:10.1111/j.1468-0076.1995.tb00527.x

Cited by 4 publications

(2 citation statements)

References 8 publications

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“…We follow the work of Bawumia (2002), Rutasitara (2004), and Korsu (2010) 2), any changes generated from the exchange rate or the foreign price lead to changes in the © 2012 The Clute Institute domestic tradable goods prices. We modify equation (2) to include oil prices. Oil prices ) ( oil t P will affect the price of the tradable goods as the country should be involved in exporting or importing of oil.…”

Section: Methodology and Model Specificationmentioning

confidence: 99%

Inflation Sources Across Developed And Developing Countries; Panel Approach

Al-Shammari

Al-Sabaey

2012

IBER

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This paper investigates the sources of inflation across a sample of countries in the world. The data set covers around fifty nine countries using yearly data over the period from 1970 through 2007. The model is estimated using a panel model with a random effects specification. Results indicate that the main determinants of inflation for developing countries are different than those for developed countries. Our findings show that the main determinants of inflation for developed countries include government spending, money supply growth, world oil prices, interest rate, nominal effective exchange rate, and population. Whereas, sources of inflation for developing countries are estimated to include government spending, money supply growth, world oil prices, and the nominal effective exchange rate. Findings also report that there is no significant evidence for factors such as interest rate and population to affect the general price levels in developing countries.

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Section: Methodology and Model Specificationmentioning

confidence: 99%

Inflation Sources Across Developed And Developing Countries; Panel Approach

Al-Shammari

Al-Sabaey

2012

IBER

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“…Salih (1993), using annual data over the 1970–1987 period, estimated an first order autoregressive [AR(1)] model with an import price index and the money supply as the explanatory variables of inflation in Kuwait 9 . He found that a doubling of world inflation causes an approximately 23 per cent increase in domestic inflation, while a 100 per cent increase in the growth of broad money supply results in a 9.5 per cent increase in domestic inflation 10 Al‐Mutairi (1995 11 .…”

Section: Earlier Literaturementioning

confidence: 99%

Country heterogeneity and long‐run determinants of inflation in the Gulf Arab states^†

Basher¹,

Elsamadisy²

2012

OPEC Energy Review

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Applying nonstationary panel data econometric methods, this paper analyzes the major sources and transmission of inflation in the Gulf Cooperation Council (GCC) countries over the 1980-2008 period. We argue that, in GCC countries, money is essentially demand determined, so that the high collinearity between money and aggregate demand indicators such as non-hydrocarbon output is expected and should be dealt with accordingly. Several important results emerge from the analysis. First, the money supply stands out as a significant determinant of inflation both in short-and long-run. Both foreign prices and the nominal effective exchange rate are shown to be more successful in explaining inflation in the long-run than the short-run. The half-life of the speed of adjustment reveals that it takes about 2.9 years for 50% of a shock to the long-run equilibrium to dissipate. An implication of our results is the case it makes for more sovereign monetary policies in GCC countries.JEL Codes: C32, C33, E31, E50, H30

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Why developing countries need a new central bank paradigm: Evidence from the Middle East and North Africa region

Abou Hamia

2024

Economic Systems

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Examining the causes of inflation in Kuwait: an application of a vector autoregression model

Cited by 4 publications

References 8 publications

Inflation Sources Across Developed And Developing Countries; Panel Approach

Inflation Sources Across Developed And Developing Countries; Panel Approach

Country heterogeneity and long‐run determinants of inflation in the Gulf Arab states^†

Why developing countries need a new central bank paradigm: Evidence from the Middle East and North Africa region

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Examining the causes of inflation in Kuwait: an application of a vector autoregression model

Cited by 4 publications

References 8 publications

Inflation Sources Across Developed And Developing Countries; Panel Approach

Inflation Sources Across Developed And Developing Countries; Panel Approach

Country heterogeneity and long‐run determinants of inflation in the Gulf Arab states†

Why developing countries need a new central bank paradigm: Evidence from the Middle East and North Africa region

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Product

Resources

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Country heterogeneity and long‐run determinants of inflation in the Gulf Arab states^†