This article examines the non-linear effect of inflation on the economic growth of Iran, Algeria, Saudi Arabia and Nigeria. So far, there have been many studies in the field of economic growth, in which different estimation methods have been used. The dependent variable of this research is GDP per capita as an indicator of economic growth, and the variables of inflation rate, investment, labor force, income from oil export and government expenditure have been used as explanatory variables. In the current study, using the non-linear distributional autoregressive model (NARDL) with the bound approach, the effect of inflation rate on the economic growth of the countries under investigation has been investigated asymmetrically. In this project, the positive changes in the inflation rate are shown with the POS variable and the negative changes in the inflation rate are shown with the NEG variable. The research period is 1990 to 2019 and the data are annualized. The results of Curran's test indicate the existence of a long-term relationship between research variables. The results in the case of Iran show that the variable coefficient of NEG is negative and significant, and the variable coefficient of POS is meaningless. In the case of Algeria, both coefficients of NEG and POS variables are negative and significant. For Nigeria, POS variable coefficient is negative and significant, but NEG variable coefficient is meaningless. Therefore, for all three countries of Iran, Algeria and Nigeria, the effect of inflation rate on growth is negative and due to the different coefficients of NEG and POS variables, this effect is non-linear. In the case of Saudi Arabia, both coefficients of POS and NEG variables are meaningless.
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