Please enter verification code
Confirm
Determinants of Inflation in Africa: A Systematic Review
International Journal of Management and Fuzzy Systems
Volume 6, Issue 4, December 2020, Pages: 59-63
Received: Sep. 4, 2020; Accepted: Sep. 25, 2020; Published: Dec. 31, 2020
Views 30      Downloads 10
Author
Wondimu Ereda Melaku, Department of Economics, Mekdela Amba University, Mekane Selam, Ethiopia
Article Tools
Follow on us
Abstract
Inflation refers to increase in general level of price of a basket of goods and services that is representative of an economy over a period of time. When there is a general rise in price level the entire economy will be affected. Rising price known as inflation impact the cost of living, the cost of doing business, borrowing money and every other facet of the economy. Several factors are responsible for rise in price level in a given country/nation. The main aim of this study is to assess the determinants of inflation in Africa based on empirical studies conducted in the past and give insights for other researchers. For this purpose, concentrated and careful literature review was done on 13 papers conducted in 13 African countries. Seven variables were considered for analysis such as broad money supply, GDP, price of imported goods and services, exchange rate, interest rate, price expectation and population growth. The result shows that output/national income, broad money supply, price of imported goods and services and exchange rate are the critical variables affecting the performance of inflation. The others variables: interest rate, price expectation and population growth are also slightly important in explaining inflation. In the literature selected for review it is observed that almost all are used macro variables without considering other factors such as political, social institutional and others. The study finally recommends that countries should seriously work in creating moderate inflation to grow their economy by increasing their national income in addition to stable fiscal and monetary policy and also focusing on the aforementioned factors is crucial. I declare that this is my own work and it is original.
Keywords
Inflation, Determinant, Long Run
To cite this article
Wondimu Ereda Melaku, Determinants of Inflation in Africa: A Systematic Review, International Journal of Management and Fuzzy Systems. Vol. 6, No. 4, 2020, pp. 59-63. doi: 10.11648/j.ijmfs.20200604.11
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
References
[1]
Abdi Halim M., M. (2018). Determinant and Impacts of Dynamic Inflation in Somaliland.
[2]
Atnafu, G. (2020). Transforming Ethiopia: Big Goals and Big Upheavals. Ethiopian Economics Association (EEA). Addis Ababa.
[3]
Carren, P. (2012). Monetary Reforms and Inflation Dynamics in Zimbabwe. International Research Journal of Finance and Economics.
[4]
El Baz, O. (2014). The Determinants of Inflation in Egypt: An Empirical Study (1991-2012). Munich Personal RePEc Archive.
[5]
Emirta, A. (2013). Inflation and Economic Growth: An Estimate of the Threshold Level of Inflation for Ethiopia. Addis Ababa, Ethiopia: Ethiopian Economic Association (EEA).
[6]
Fatukasi, B. (2010). Determinants of Inflation in Nigeria: An Empirical Analysis. International Journal of Humanities and Social Science.
[7]
Haile, K. (2012). The Determinants of Inflation in Botswana and Bank of Botswana’s Medium-Term Objective Range. Botswana Journal of Economics.
[8]
Kamel, Si Mohammed, Kheira Benyamina, Abderrezzak Benhabib. (2012). The Main Determinants Of Inflation In Algeria: An ARDL Model. International Journal of Management, IT and Engineering.
[9]
Mansaray-Pearce, E. A. (2015). The Determinants of Inflation in Sierra Leone: A Cointegration Analysis. Journal of Economics and Sustainable Development.
[10]
Marcus, G. (2012). Monetary Policy and Inflationary Challenges in the Face of the Global Economic Crisis.
[11]
Oatlhotse, Madito and Nicholas M. Odhiambo. (2018). The Main Determinants of Inflation in South Africa: An Empirical Investigation.
[12]
Osborn, O. (2016). The Determinants of Inflation in the Kenyan Economy. International Journal of Economics.
[13]
Patrick Enu, Emmanuel Dodzi K. Havi. (2014). Macroeconomic Determinants of Inflation In Ghana: A Co integration Approach. International Journal of Academic Research in Business and Social Sciences.
[14]
Ruzima, Martin and Veerachamy, P. (2015). A Study on Determinants of Inflation in Rwanda from 1970-2013. Int. Journal of Management and Development Studies.
[15]
Suliman, K. M. (2012). The Determinants of Inflation in Sudan.
[16]
Teamrat, K. (2017). Determinants of Inflation in Ethiopia: A Time-Series Analysis. Journal of Economics and Sustainable Development.
ADDRESS
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
U.S.A.
Tel: (001)347-983-5186