The Impact of Inflation Rate on Private Consumption Expenditure and Economic Growth—Evidence from Ghana

Olusola, Babalola Emmanuel; Chimezie, Muruako Emmanuel; Shuuya, Selma Magano; Addeh, George Yaw Asare

doi:10.4236/ojbm.2022.104084

Cited by 15 publications

(13 citation statements)

References 39 publications

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“…Our results also reveal that after joining BRI, both inflation rate and government expenditure were found significant and negatively correlated toward economic growth. This can be reasoned that low inflation would contribute to a higher rate of growth (Olusola et al, 2022). This is because low inflation rate helps to promote stability, confidence, and encourages for investment.…”

Section: Discussionmentioning

confidence: 99%

“…Many studies show predictable high inflation can harm an economy's long-term real growth or real activity. Study by Olusola et al, 2022) investigate the causality relationship between inflation and economic growth between the years 1996 and 2019 in 27 EU countries. In their analysis, two variables were used as an indicator of inflation which are consumer prices Index (CPI) and GDP deflator.…”

Section: Literature Reviewmentioning

confidence: 99%

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Impact of Belt and Road Initiative on Economic Growth

Ooi¹,

Azman²,

SAW³

et al. 2022

LBIBF

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Belt and Road Initiative (BRI) has been proposed by president of China in 2013, as the purpose of boosting developments and trade activities in China, Asia, Europe, Middle East and Africa. The study focuses on examining the impacts of BRI strategy towards the economic growth of 60 participated countries. Panel data analysis is used to determine the relationship of foreign direct investment, government expenditure, international trade, exchange rate and inflation rate with gross domestic production. We divide the sample into pre-and post-BRI covering from 2008-2013 and 2014-2020 respectively to better dissect the impact of BRI on economic growth. Our findings show that the impact of foreign direct investment and exchange rate on economy growth are significant during the period of pre-BRI while after BRI foreign direct investment, exchange rate, government expenditure and inflation are found significantly associated with economic growth. The findings also demonstrate the expected sign of the relationship with theory; merely government expenditure shows unexpected negative sign. The study covers almost full sample of participated countries lead to the highly reliable panel regression results. The finding perhaps can be the guideline to those countries who intend to be part of BRI in the future.

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Section: Discussionmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Impact of Belt and Road Initiative on Economic Growth

Ooi¹,

Azman²,

SAW³

et al. 2022

LBIBF

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“…Inflation can arise unexpectedly and from diverse sources, making it difficult to exercise control over its occurrence (Ridwan, 2022). Various researchers, such as: Kessel & Alchian (1962);McConnell et al (2014), Oner (2017), Yanti (2018), Olusola et al (2022), Sembiring et al (2022), Trihardianto & Hartanti (2022, etc., have analysed the phenomenon of inflation and given their definitions for this phenomenon, which are basically the same.…”

Section: Inflationmentioning

confidence: 99%

“…Yanti (2018) characterizes inflation as a persistent phenomenon, involving a general increase in prices that occurs consistently over a defined duration. Inflation pertains to the continuous upward movement in the general price level of goods and services (Olusola et al, 2022). Inflation is defined as a persistent increase in the overall price level of an economy and cannot be attributed solely to the price escalation of one or two goods, unless such increases extend to and impact the prices of other goods (Sembiring et al, 2022).…”

Section: Inflationmentioning

confidence: 99%

“…Maintaining economic stability poses a significant challenge for governments worldwide. Factors, such as government policies, domestic consumption rates, deflation and inflation exert substantial influence on a country's economy (Olusola et al, 2022). Among the macroeconomic issues that garner substantial attention from financial analysts, policymakers and monetary authorities, in both developed and developing nations, is the relation between inflation and economic growth (Ndoricimpa, 2017;Seleteng et al, 2013;Adaramola & Dada, 2020).…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Inflation on the Profitability of Businesses: Evidence from Kosovo

Tërstena

Deda

Todorova

et al. 2023

JESR

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The aim of this paper is to assess how inflation affects the financial performance of businesses operating in Kosovo. More precisely, the impact of inflation and profit tax on the profitability of businesses is analysed, as well as the relationship between the profitability of businesses with the inflation level, the profit tax, the net wages level and the GDP level of Kosovo for the period 2018 - 2021. In this study, the quantitative approach was applied and the descriptive and verification method was used as the research method. Analyses performed include linear regression analysis and linear trend analysis. The data used in the research are secondary data provided by the financial statements of businesses operating in Kosovo published by the Ministry of Finance, Labour and Transfers. The research sample included 120 businesses. The results of this study show that, for the analysed period 2018 - 2021, inflation and profit tax have a positive impact on the profitability of businesses in Kosovo, as well as there is a positive relationship between the profitability of businesses with the inflation level, the tax on profit, the net wages level and the GDP level in Kosovo. This study contributes to the literature as evidence that makes clear the impact of inflation on the profitability of businesses in Kosovo and can serve as a good basis for other researchers who analyse similar aspects in the future. Received: 20 March 2023 / Accepted: 13 June 2023 / Published: 5 July 2023

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Macroeconomic variables, climate change and sustainability

Naimoğlu

2024

Reference Module in Social Sciences

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The Impact of Inflation Rate on Private Consumption Expenditure and Economic Growth—Evidence from Ghana

Cited by 15 publications

References 39 publications

Impact of Belt and Road Initiative on Economic Growth

Impact of Belt and Road Initiative on Economic Growth

The Impact of Inflation on the Profitability of Businesses: Evidence from Kosovo

Macroeconomic variables, climate change and sustainability

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