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

  •  Noura Abu Asab    
  •  Alaaeddin Al-Tarawneh    


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. 

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