Investigating the relationship between inflation and economic growth in Mauritania: an empirical analysis using the regime change model

This study examines the non-linear relationship between inflation and economic growth in Mauritania using the threshold regression model. The analysis covers the period from 1970 to 2018, allowing for a comprehensive assessment of the inflation–growth dynamics in the country. By employing the regime change model, we aim to identify the existence of a threshold level of inflation beyond which the relationship with economic growth changes. This approach allows us to capture potential asymmetries and non-linearities in the relationship, providing valuable insights for policymakers. In line with several previous research works, our findings indicated that there is a non-linear relationship between the consumer price index and the economic growth. This relationship was influenced by macroeconomics features. In addition, the results show a positive impact of inflation on economic growth below the threshold of 5.53%, while, above this threshold, the relationship becomes negative.