2692-4048ISSN (Online)
2770-0070ISSN (Print)
Volume 15 , Issue 2 , PP: 112-120, 2024 | Cite this article as | XML | Html | PDF | Full Length Article
Hakimov Hakimjon 1 * , Bakhriddinov Vikorjon 2 , Kodirov Ural 3 , Nilufar Nabieva 4
Doi: https://doi.org/10.54216/FPA.150210
This study addresses the two types of fusion between inflation and economic growth in Uzbekistan. The first is the quantitative relationship between inflation and economic growth, and the second is the marginal relationship between them. The first relationship is based on a simple regression model, while the second analysis is carried out by a threshold regression model. Also, the threshold regression model itself has been analyzed using two methods (TSLS and OLS). The data for the research was covered from 2000 to 2022. Also, the variables used in the analysis were checked for stationarity by the Dickey-Fuller and Phillips-Perron tests. The predictors were included in the study after confirmation of hypothesis tests that were positive. According to the results of the study, the correlation between inflation and economic growth in Uzbekistan is negative. Particularly when inflation is lower than a certain level, economic growth is influenced positively, while it has a negative effect on economic growth when it exceeds a certain level. In general, the study determined the optimal level of inflation for Uzbekistan in terms of its positive impact on economic growth.
inflation , inflation-growth fusion , optimal inflation rate , threshold level , economic growth , GDP.
[1] Barro, R.J, (1996). Determinants of economic growth: A cross-country empirical study. NBER Working Paper 5698, pp. 71-118
[2] Ghosh, A., Phillips, S. (1998) Warning: Inflation may be harmful to your growth. International Monetary Fund Staff Papers 45, pp. 672–710
[3] Judson R. and Orphanides A. (1999), Inflation, Volatility and Growth, International Finance, 2(1), 117-138.
[4] Khan, MS, Senhadji, AS (2001). Threshold effects in the relationship between inflation and growth, IMF Staff Papers, 48(1), pp.1-21.
[5] Muhammad Eid BALBAA, Fusion Unleashed: A Comprehensive Analysis of Egypt's Digital Potential, the Growing Digital Economy, and its Socio-Economic Implications, Journal of Journal of Sustainable Development and Green Technology, Vol. 2 , No. 2 , (2023) : 08-17 (Doi : https://doi.org/10.54216/JSDGT.020201).
[6] Vaona, A., & Schiavo, S. (2007). Nonparametric and semiparametric evidence on the long-run effects of inflation on growth. Economics Letters, 94(3), 452-458.
[7] MRA Espinoza, A Prasad, MGL Leon (2010). Estimating the inflation-growth nexus — a smooth transition model. International Monetary Fund. (76), pp. 22.
[8] Fakhri, H. (2011). Relationship between inflation and economic growth in the Azerbaijani economy: is there any threshold effect? Asian journal of business and management sciences, 1(1), 1-11.
[9] Nazir, S., Saeed, S., & Muhammad, A. (2017). Threshold modeling for inflation and GDP growth. MPRA Paper No. 79649, posted on June 14, 2017
[10] Aydin, C., Odabasioglu, FG (2017). Financial Development and Economic Growth: The Case of Turkey and Romania. International Journal of Academic Research in Business and Social Sciences, 7(6), 23-38.
[11] Ekinci, R., Tüzün, O., Ceylan, F. (2020). The relationship between inflation and economic growth: Experiences of some inflation targeting countries. Financial Studies, 24(1 (87)), 6-20.
[12] Thouraya B. (2021). "Nonlinearity Relationship between Inflation and Economic Growth: Role of Institutional Quality," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 166-179, December.
[13] Baratova, D., Khasanov, K., Hakimov, H., Uktamov, K., & Gulomov, E. (2023). Ways to Develop Financial Resources in the Innovative Development of the Economy. In E3S Web of Conferences (Vol. 449, p. 05010). EDP Sciences.
[14] Muhammad E. Balbaa, Zebo Kuldasheva, Nilufar Ismoilova, The Economic Impacts of Food Waste Carbon Footprint on climate change:The Case of Egypt, Journal of Financial Technology and Innovation, Vol. 2 , No. 1 , (2023) : 08-18 (Doi : https://doi.org/10.54216/FinTech-I.020101)
[15] Fayzieva, M. (2023) Fusion Methodologies of the Assessment of the Effectiveness of Digital Technologies in Commercial Banks. Fusion: Practice and
