The Role of Economic Growth in Containing Inflationary Spiral in Selected ASEAN Countries – Panel Data Evidence from Malaysia, Indonesia, Thailand, and Singapore
The Role of Economic Growth in Containing Inflationary Spiral in Selected ASEAN Countries – Panel Data Evidence from Malaysia, Indonesia, Thailand, and Singapore

Summary/Abstract: This paper aims to investigate the effect of the gross domestic product growth rate on inflation in these fourselected ASEAN countries. This study is worthy as there is a need to understand the variance of national infla-tion for these ASEAN countries, particularly when Singapore’s inflation rate is the lowest among them. TheKeynesian Theory and Static Panel Data analysis are put to the test in this empirical study. The investigationis carried out on yearly balanced panel data involving four ASEAN member countries. The secondary data isextracted from the World Bank database over a study period of sixty years from 1961 to 2020. The methodol-ogy is based on static panel data analysis involving both Fixed Effect and Random Effect models. The empiricalresults show that there is a negative significant relationship between economic growth and inflation withinthe four countries sampled. As such, the policy implication from this study may suggest that it is important forASEAN-4 governments to continue beefing up their economic growth in order to curb inflationary pressure.

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