Quest of nexus between inflation and economic development: evidence from Asian countries

This empirical analysis aspires to scrutinise the nexus between economic development and inflation in Asian perspective by utilising panel dynamic ordinary least squire (OLS) and the panel Granger causality method. The outcome of the panel dynamic OLS documents that, some proxies of economic development such as electric potency, transportation, telecommunication facility as well as financial development have negative impact on inflation, however, the per capita gross domestic product has a positive impact on the general price level. On the other hand, the consequence of causality analysis unearths that, there is one-way causality running from the per capita gross domestic product to inflation. Furthermore, the current study also documents that there is no causality running from energy, transport, communication, human resource, and financial development towards inflation. The policymakers can adopt all those strategies, which substantially enhance the economic development to condense inflation.