Logo
Munich Personal RePEc Archive

Testing for nonlinear causation between capital inflows and domestic prices

Rashid, Abdul (2010): Testing for nonlinear causation between capital inflows and domestic prices.

[img]
Preview
PDF
MPRA_paper_26082.pdf

Download (152kB) | Preview

Abstract

The nonlinear cointegration and Granger causality tests are applied in a bi-variate framework to investigate the effects of capital inflows, monetary expansion and interest rates on domestic price levels. The key message of the analysis is that there is a significant inflationary impact of capital inflows, money supply-to-GDP ratio and domestic debt, in particular during period of large capital inflows from 2001 to 2008. Whereas, interest rate and exchange rate do not have any significant nonlinear causal links with domestic price levels during the examined periods.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.