The exchange rate pass-through to inflation, inflation persistence, and threshold inflation rate of West African commonwealth countries

High inflation rate and currency devaluation prevailed to be among the everyday challenges of West African Commonwealth Countries (WACCs). Additionally, the majority of the WACCs are unable to curtail and maintain inflation rate at single digit, for registering meaningful economic growth and develop...

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Main Author:	Danlami, Ibrahim Abdulhamid
Format:	Thesis
Language:	eng eng eng eng
Published:	2019
Subjects:	HC Economic History and Conditions
Online Access:	https://etd.uum.edu.my/8640/1/depositpermission_s902049.pdf https://etd.uum.edu.my/8640/3/s902049_references.docx https://etd.uum.edu.my/8640/5/s902049_01.pdf https://etd.uum.edu.my/8640/6/s902049_02.pdf
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spelling	my-uum-etd.86402021-10-04T03:31:08Z The exchange rate pass-through to inflation, inflation persistence, and threshold inflation rate of West African commonwealth countries 2019 Danlami, Ibrahim Abdulhamid Hidthiir, Mohamad Helmi Hassan, Sallahuddin School of Economics, Finance & Banking School of Economics, Finance & Banking HC Economic History and Conditions High inflation rate and currency devaluation prevailed to be among the everyday challenges of West African Commonwealth Countries (WACCs). Additionally, the majority of the WACCs are unable to curtail and maintain inflation rate at single digit, for registering meaningful economic growth and development. This study aims to analyze the exchange rate pass-through (ERPT) to inflation of WACCs during 1980 – 2016, examine the inflation persistence of WACCS, and establish a threshold-inflation rate by which it is inimical to the economic growth of WACCs during 1970 – 2016. Data were analyzed using Autoregressive Distributed Lag Model (ARDL), Autoregressive (AR) Model, and the Conventional Threshold Model of regime-switching. The ARDL results show that during the short-run, the existence of immediate and complete ERPT is discovered in Ghana, the Gambia and Sierra Leone, whereas no ERPT in Nigeria. The long-run results reveal the existence of complete and positive ERPT in all countries. The AR result shows that high persistence inflation is associated with the first-year lag inflation rate in all the countries in addition to the second year-lag inflation of the Gambia alone. Meanwhile, in Nigeria, the second-year lag inflation is associated with low inflation persistence. It is the third-year lag inflation rate that has an association with low inflation persistence in the Gambia. The results of the threshold model indicate that the lower threshold inflation rates of WACCs are single-digit in all the WACCs except Nigeria, which has double-digit, while the upper threshold inflation rates are double-digit in Nigeria and Ghana and single-digit in the Gambia and Sierra Leone. This study suggests import substitutions and export promotions programs to stabilize exchange rate. Targeted inflation rates are achievable if the inflation-targeting policy is strengthened. 2019 Thesis https://etd.uum.edu.my/8640/ https://etd.uum.edu.my/8640/1/depositpermission_s902049.pdf text eng 2022-12-18 staffonly https://etd.uum.edu.my/8640/3/s902049_references.docx text eng public https://etd.uum.edu.my/8640/5/s902049_01.pdf text eng 2022-12-18 staffonly https://etd.uum.edu.my/8640/6/s902049_02.pdf text eng 2022-12-18 staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Hidthiir, Mohamad Helmi Hassan, Sallahuddin
topic	HC Economic History and Conditions
spellingShingle	HC Economic History and Conditions Danlami, Ibrahim Abdulhamid The exchange rate pass-through to inflation, inflation persistence, and threshold inflation rate of West African commonwealth countries
description	High inflation rate and currency devaluation prevailed to be among the everyday challenges of West African Commonwealth Countries (WACCs). Additionally, the majority of the WACCs are unable to curtail and maintain inflation rate at single digit, for registering meaningful economic growth and development. This study aims to analyze the exchange rate pass-through (ERPT) to inflation of WACCs during 1980 – 2016, examine the inflation persistence of WACCS, and establish a threshold-inflation rate by which it is inimical to the economic growth of WACCs during 1970 – 2016. Data were analyzed using Autoregressive Distributed Lag Model (ARDL), Autoregressive (AR) Model, and the Conventional Threshold Model of regime-switching. The ARDL results show that during the short-run, the existence of immediate and complete ERPT is discovered in Ghana, the Gambia and Sierra Leone, whereas no ERPT in Nigeria. The long-run results reveal the existence of complete and positive ERPT in all countries. The AR result shows that high persistence inflation is associated with the first-year lag inflation rate in all the countries in addition to the second year-lag inflation of the Gambia alone. Meanwhile, in Nigeria, the second-year lag inflation is associated with low inflation persistence. It is the third-year lag inflation rate that has an association with low inflation persistence in the Gambia. The results of the threshold model indicate that the lower threshold inflation rates of WACCs are single-digit in all the WACCs except Nigeria, which has double-digit, while the upper threshold inflation rates are double-digit in Nigeria and Ghana and single-digit in the Gambia and Sierra Leone. This study suggests import substitutions and export promotions programs to stabilize exchange rate. Targeted inflation rates are achievable if the inflation-targeting policy is strengthened.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Danlami, Ibrahim Abdulhamid
author_facet	Danlami, Ibrahim Abdulhamid
author_sort	Danlami, Ibrahim Abdulhamid
title	The exchange rate pass-through to inflation, inflation persistence, and threshold inflation rate of West African commonwealth countries
title_short	The exchange rate pass-through to inflation, inflation persistence, and threshold inflation rate of West African commonwealth countries
title_full	The exchange rate pass-through to inflation, inflation persistence, and threshold inflation rate of West African commonwealth countries
title_fullStr	The exchange rate pass-through to inflation, inflation persistence, and threshold inflation rate of West African commonwealth countries
title_full_unstemmed	The exchange rate pass-through to inflation, inflation persistence, and threshold inflation rate of West African commonwealth countries
title_sort	exchange rate pass-through to inflation, inflation persistence, and threshold inflation rate of west african commonwealth countries
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2019
url	https://etd.uum.edu.my/8640/1/depositpermission_s902049.pdf https://etd.uum.edu.my/8640/3/s902049_references.docx https://etd.uum.edu.my/8640/5/s902049_01.pdf https://etd.uum.edu.my/8640/6/s902049_02.pdf
_version_	1747828428915081216

The exchange rate pass-through to inflation, inflation persistence, and threshold inflation rate of West African commonwealth countries

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