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

Noura Abu Asab, Alaaeddin Al-Tarawneh
2018 Modern Applied Science  
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. 
doi:10.5539/mas.v12n12p113 fatcat:oen2gkd6qfdobmb6nqdqmzusuy