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Journal of Emerging Trends in Economics and Management Sciences (JETEMS)
ISSN: 2141-7024
| Abstract: This paper explores the relationship between inflation and economic growth for sustainable economic development in Qatar. Using annual data on Economic growth and inflation rate for the period of 1980 to 2011, co-integration and error correction models are estimated. The empirical evidence demonstrates that there exists a statistically significant long-run negative relationship between inflation and economic growth in Qatar. This result has important implications for both domestic policy makers and the development partners working for the country. Specifically, our conclusion is of direct relevance to the conduct of the monetary policy by the Qatar Bank. |
| Keywords: inflation, economic growth, co-integration, error correction model, Qatar |
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