Inflation significantly impacts a country's imports and exports
Empirical evidence from multiple countries confirms that inflation significantly influences international trade dynamics, import-export performance, and trade balance competitiveness.
The retrieved literature contains several empirical studies (e.g., papers 0, 1, and 11) using ARDL models and threshold regressions that specifically demonstrate the significant two-way links between inflation and a country's import and export performance. Therefore, the claim is well-supported by current economic evidence.
Jingjing Yang, S. Mowahed, M.W. Sharif Zada. Impact of Imports and Exports on Inflation Rate in Afghanistan: Does Political Instability Matter?. 2025. https://doi.org/10.3897/brics-econ.6.e138160
Demonstrates that both imports and exports significantly impact inflation in Afghanistan in both the short and long term.
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Ojo Johnson Adelakun, Thapelo Lekena, M. E. Motampane, Lesia Mots’oanyane, Buthelezi Nyathi. The Effects of Inflation on International Trade Dynamics in South Africa. 2025. https://doi.org/10.61093/fmir.9(3).159-170.2025
Shows that inflation shapes South Africa's international trade dynamics, with imports and exports directly interacting with inflation and trade balance measures.
Addis AK, Xindong Y, Tianze M, Addis HK. The role of economic stability in boosting exports in COMESA: Threshold effects analysis.. 2025. https://doi.org/10.1371/journal.pone.0338636
Finds that inflation thresholds critically dictate the impact of trade openness on export performance in COMESA countries.
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