Omay, TolgaOmay, Tolgavan Eyden, ReneeGupta, RanganEconomics2024-07-052024-07-052018110377-73321435-892110.1007/s00181-017-1237-22-s2.0-85017177046https://doi.org/10.1007/s00181-017-1237-2https://hdl.handle.net/20.500.14411/2701Van Eyden, Renee/0000-0002-6238-6215This paper analyses the empirical relationship between inflation and growth using a panel data estimation technique, multiple-regime panel smooth transition regression, which takes into account the nonlinearities in the data. By using a panel data set for 10 countries in the Southern African Development Community permitting us to control for unobserved heterogeneity at both country and time levels, we find that a statistically significant negative relationship exists between inflation and growth for inflation rates above the critical threshold levels of 12 and 32% which are endogenously determined. Furthermore, we remedy the cross-section dependence with the common correlated effects estimator.eninfo:eu-repo/semantics/openAccessInflationGrowthThreshold effectsMultiple-regime panel smooth transition regression modelCross-section dependenceCommon correlated effectsArticleQ2543913944WOS:000429801200002