Abstrakt

Nonlinear Relationships Between Macroeconomic Indicators Shocks and Inflation Rate in Sudan Economy 1970-2019: Evidence Combination Between NARDL Model, SVAR Approach

Hassan Tawakol A. Fadol

This paper integrates the NARDL model and SVAR approach to analyze the long-run and short-run asymmetric effect, Nonlinear Relationships of macroeconomic indicators shocks on Inflation rate in Sudan Economy. We reveal that the demand-side shocks of oil price have a significant impact on the Chinese stock market in both short and long run, but the supply shock is an exception. In terms of asymmetric nature, there is no evidence of asymmetric impact when it refers to the supply shock and the oil-specific demand shock on stock market, and only the aggregate demand shock has asymmetric effect in short run. NARDL model results confirm the presence of long run equilibrium relationship between inflation rate and macroeconomic indicators shocks. Our findings tend to suggest that the long run relationship is asymmetric, while evidence is in support of asymmetrical short- run trade-off between the variables.

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