Economics, Econometrics and Finance
4 years ago

Food inflation negatively impacts manufacturing output growth in Kenya, study finds.

Journal of Economics and Sustainable Development
Dynamics of Core Inflation, Energy Inflation, Food Inflation and Manufacturing Sector Output Growth in Kenya: Econometric Analysis of Causality and Effects
Alphonce Juma Odondo

Paper Summary

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The article explores the relationship between inflation rates and manufacturing sector growth in Kenya. By analyzing data over time, the researchers found that food inflation negatively affects manufacturing output, while core inflation has a positive impact. This suggests that stabilizing food inflation and maintaining low core inflation can help boost manufacturing sector growth in the country.