|
UPSI Digital Repository (UDRep)
|
|
|
|
||||||||||||||||||||||||
| Abstract : Perpustakaan Tuanku Bainun |
| This study investigates the macroeconomic determinants of money demand (M2) in Malaysia over the period 1980 to 2023. Using the Autoregressive Distributed Lag (ARDL) approach, the analysis explores the relationship between money demand and key economic variables, including Gross Domestic Product (GDP), interest rates (IR), inflation (INF), and the shadow economy (SE). The study ensures stationarity through unit root tests and examines long-run relationships using cointegration tests. The results reveal significant dynamics in both the longrun and short-run, with inflation and the shadow economy identified as key drivers of money demand. These findings highlight the role of both the formal and informal sectors in influencing monetary policy. |
| References |
Abdulkheir, A. Y. (2013). An analytical study of the demand for money in Saudi Arabia. International Journal of Economics and Finance, 5(4). https://doi.org/10.5539/ijef.v5n4p31 Adediyan, A. R. (2021). Determinants of money supply in Nigeria. Central Bank of Nigeria Journal of Applied Statistics, Vol. 11 No. 2, 181–199. https://doi.org/10.33429/cjas.11220.7/8 Al-Habashneh, F. M. (2022). The Narrow and Expanded Money Supply and Its Impact on Interest Rate and Product of the Private Sector in Jordan during the Period (1990–2019). Foundations of Management, 14(1), 143–154. https://doi.org/10.2478/fman-2022-0009 Budha, B. B. (2013). Demand for Money in Nepal: An ARDL Bounds Testing approach. NRB Economic Review, 25(1), 21–36. https://doi.org/10.3126/nrber.v25i1.52698 Dobre, I., & Davidescu, A. A. (n.d.). Long-run demand for money and the size of shadow economy in Romania: An application of ARDL model. Bucharest Academy of Economic Studies. Retrieved from https://ecocyb.ase.ro/nr.3.pdf/Ion%20Dobre.pdf Dritsakis, N. (2011). Demand for money in Hungary: An ARDL approach. Review of Economics & Finance, 1, 1–16. Retrieved from https://ideas.repec.org/a/bap/journl/110501.html Fasipe, T. B., & Yusuf, W. A. (2020). Evaluating the model of demand for money in Nigeria. Financial Risk and Management Reviews, 6(1), 1–13. https://doi.org/10.18488/journal.89.2020.61.1.13 Gamal, A. A. M., Rambeli, N., Abdul Jalil, N., & Viswanathan, K. K. (2019). A modified currency demand function and the Malaysian shadow economy: Evidence from ARDL bounds testing approach. Economic Analysis and Policy, 64(C), 266–281. https://doi.org/10.1016/j.eap.2019.09.006 Garcia, M., & Puspaningtyas, M. (2021). The effect of the ratio of the money supply, the ratio of bank credit, and the ratio of domestic savings to economic growth in Malaysia. SPLASH Magz, 1(2), 12–16. https://doi.org/10.54204/splashmagzvol1no2pp12to16 Geng, S., Jusoh, M., & Md. Tahir, M. Z. (2009). The stability of money demand in China: An application of the ARDL model. Prosiding Persidangan Kebangsaan Ekonomi Malaysia (PERKEM IV), 2, 98–109. Retrieved from https://www.ukm.my/fep/perkem/pdf/perkemIV/PERKEM2009-2-08.pdf George, C., Suoyai, E., Tema, L., & Boloekeye, M. (2018). Impact of money supply on some macroeconomic variables on the Nigerian economy. Journal of Business Management and Economic Research, 2(5), 32–46. https://doi.org/10.29226/tr1001.2018.32 Goestjahjanti, F. S. (2024). Controlling the money supply from macroeconomics perspective: Saving interest and exchange rate. Sebelas Maret Business Review, 9(1), 49. https://doi.org/10.20961/smbr.v9i1.88730 Goldfeld, S. M., & Sichel, D. E. (1990). Chapter 8 The demand for money. In Handbook of monetary economics (pp. 299–356). https://doi.org/10.1016/s1573-4498(05)80011-6 Hashim, S. S. (2011). Examine stability of demand for money in Malaysia: Using autoregressive distributed lag (ARDL) model (Master’s thesis, Universiti Utara Malaysia). Retrieved from https://etd.uum.edu.my/3724/1/s804875.pdf He, Y. (2017). A Study on the Relationship between Money Supply and Macroeconomic Variables in China. Mediterranean Journal of Social Sciences, 8(6), 99–107. https://doi.org/10.1515/mjss-2017-0046 Hussin, A., Ali, J., & Matahir, H. (2010). Re-examining the demand for money in ASEAN-5 countries. Asian Social Science, 6(7), 146–156. https://doi.org/10.5539/ass.v6n7p146 Ifionu, E., & Akinpelumi, O. F. (2015). Macroeconomic Variables and Money Supply: Evidence from Nigeria. African Research Review, 9(4), 288. https://doi.org/10.4314/afrrev.v9i4.22 Inam, U. S. (2017). Monetary policy and economic growth in Nigeria: Evidence from Nigeria. Advances in Social Sciences Research Journal, 4(6). https://doi.org/10.14738/assrj.46.2806 Iordanova, T. (2022, January 5). An Introduction to Non-Stationary Processes. Investopedia. https://www.investopedia.com/articles/trading/07/stationary.asp Kunwar, K. B. (2020). Money supply and economic growth of Nepal: ARDL approach. Contemporary Research an Interdisciplinary Academic Journal, 4(1), 76–94. https://doi.org/10.3126/craiaj.v4i1.32732 Mazher, M. A., & Dahlan, J. (2020). DETERMINING FACTOR FOR MALAYSIAN MONEY DEMAND FUNCTION. International Journal of Economics Business and Accounting Research (IJEBAR), 4(03). https://doi.org/10.29040/ijebar.v4i03.1091 Özçalik, M. (2014). TÜRKIYE’DE PARA TALEP FONKSIYONU: BIR ARDL YAKLASIMI. Sosyal Ekonomik Arastirmalar Dergisi, 14(28), 172–187. https://doi.org/10.30976/susead.302206 Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. Poon, W.-C., & Tong, G.-K. (2009). The feasibility of inflation targeting in Malaysia. Economics Bulletin, 29(2), 1035–1045. Retrieved from https://www.researchgate.net/publication/46547235_The_feasibility_of_inflation_targeting_in_Malaysia Sharifi-Renani, H. (2007). Demand for money in Iran: An ARDL approach. Munich Personal RePEc Archive. Retrieved from https://mpra.ub.uni-muenchen.de/8224/ Sheefeni, J. P. S. (2013). Demand for money in Namibia: An ARDL bounds testing approach. University of the Western Cape. Retrieved from https://www.researchgate.net/publication/308202631_Demand_for_Money_in_Namibia_An_ARDL_Bounds_Testing_Approach Shrestha, M. B., & Bhatta, G. R. (2018). Selecting appropriate methodological framework for time series data analysis. The Journal of Finance and Data Science, 4(2), 71–89. Sulaiman, Z. A. (2020). Money supply and private sector funding in Nigeria: A Multi-Variant Study. Asian Finance & Banking Review, 4(1), 24 41. https://doi.org/10.46281/asfbr.v4i1.573 Walsh, C. E. (2003). Monetary Theory and Policy, 2nd Edition. ideas.repec.org. https://ideas.repec.org/b/mtp/titles/0262232316.html Yuliadi, I. (2020). An analysis of money supply in Indonesia: Vector Autoregressive (VAR) approach. Journal of Asian Finance Economics and Business, 7(7), 241–249. https://doi.org/10.13106/jafeb.2020.vol7.no7.241
|
| This material may be protected under Copyright Act which governs the making of photocopies or reproductions of copyrighted materials. You may use the digitized material for private study, scholarship, or research. |