The Impact of Inflation on Investment: The Non-Linear Nexus and Inflation Threshold in Jordan


  •  Noura Abu Asab    
  •  Alaaeddin Al-Tarawneh    

Abstract

This paper highlights the nonlinear relationship between inflation and investment in Jordan. Applying a threshold model over the period 1980-2016, the results reveal that investment is retracted by inflation when inflation rate reaches a threshold of 10%. This suggests that inflation rates should remain below 10% to sustain and improve investment levels. 



This work is licensed under a Creative Commons Attribution 4.0 License.
  • ISSN(Print): 1913-1844
  • ISSN(Online): 1913-1852
  • Started: 2007
  • Frequency: monthly

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