Globalization and Inflation Nexus in South Africa: An Empirical Investigation
The impact of globalisation on inflation is investigated for South Africa using annual time series data from 1990 to 2022. The study was motivated by the need to establish if the notion that globalisation leads to a decrease in prices in the domestic economy still holds water for South Africa. The s...
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| Format: | Article |
| Language: | English |
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University of Bacău
2024-07-01
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| Series: | Studies and Scientific Researches: Economics Edition |
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| Online Access: | https://sceco.ub.ro/index.php/SCECO/article/view/563 |
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| author | Mercy T T Musakwa Mmathapelo De Jenga |
| author_facet | Mercy T T Musakwa Mmathapelo De Jenga |
| author_sort | Mercy T T Musakwa |
| collection | DOAJ |
| description | The impact of globalisation on inflation is investigated for South Africa using annual time series data from 1990 to 2022. The study was motivated by the need to establish if the notion that globalisation leads to a decrease in prices in the domestic economy still holds water for South Africa. The study employs ARDL to explore the nature of the relationship between globalisation and inflation. Using trade openness as a measure of globalisation and the rate of change of the consumer price index as a measure of inflation, the study found globalisation to worsen inflation pressures in South Africa irrespective of the timeframe considered. Thus, South African authorities need to put measures in place to reduce the impact of globalisation on price levels. Policy implications are discussed |
| format | Article |
| id | doaj-art-153b84d0917d4fcbb0b69ba807ae3394 |
| institution | DOAJ |
| issn | 2066-561X 2344-1321 |
| language | English |
| publishDate | 2024-07-01 |
| publisher | University of Bacău |
| record_format | Article |
| series | Studies and Scientific Researches: Economics Edition |
| spelling | doaj-art-153b84d0917d4fcbb0b69ba807ae33942025-08-20T03:13:44ZengUniversity of BacăuStudies and Scientific Researches: Economics Edition2066-561X2344-13212024-07-013910.29358/sceco.v0i39.563Globalization and Inflation Nexus in South Africa: An Empirical InvestigationMercy T T Musakwa0Mmathapelo De Jenga1Regenesys: School of FinanceRegenesys: School of FinanceThe impact of globalisation on inflation is investigated for South Africa using annual time series data from 1990 to 2022. The study was motivated by the need to establish if the notion that globalisation leads to a decrease in prices in the domestic economy still holds water for South Africa. The study employs ARDL to explore the nature of the relationship between globalisation and inflation. Using trade openness as a measure of globalisation and the rate of change of the consumer price index as a measure of inflation, the study found globalisation to worsen inflation pressures in South Africa irrespective of the timeframe considered. Thus, South African authorities need to put measures in place to reduce the impact of globalisation on price levels. Policy implications are discussedhttps://sceco.ub.ro/index.php/SCECO/article/view/563inflationglobalisationSouth Africaautoregressive distributed lagmonetary policyfiscal policy |
| spellingShingle | Mercy T T Musakwa Mmathapelo De Jenga Globalization and Inflation Nexus in South Africa: An Empirical Investigation Studies and Scientific Researches: Economics Edition inflation globalisation South Africa autoregressive distributed lag monetary policy fiscal policy |
| title | Globalization and Inflation Nexus in South Africa: An Empirical Investigation |
| title_full | Globalization and Inflation Nexus in South Africa: An Empirical Investigation |
| title_fullStr | Globalization and Inflation Nexus in South Africa: An Empirical Investigation |
| title_full_unstemmed | Globalization and Inflation Nexus in South Africa: An Empirical Investigation |
| title_short | Globalization and Inflation Nexus in South Africa: An Empirical Investigation |
| title_sort | globalization and inflation nexus in south africa an empirical investigation |
| topic | inflation globalisation South Africa autoregressive distributed lag monetary policy fiscal policy |
| url | https://sceco.ub.ro/index.php/SCECO/article/view/563 |
| work_keys_str_mv | AT mercyttmusakwa globalizationandinflationnexusinsouthafricaanempiricalinvestigation AT mmathapelodejenga globalizationandinflationnexusinsouthafricaanempiricalinvestigation |