Determinants and Stability of Demand for Money in Vietnam

Long, Pham Dinh; Hien, Bui Quang

doi:10.1007/978-3-319-73150-6_56

Cited by 4 publications

(3 citation statements)

References 8 publications

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“…All of the coefficient estimates are stable, either individually in the CUSUM or CUSUMQ tests or in both tests, except for Vietnam, which is similar to previous results. Long and Hien (2018) used similar variables to the ones used in this study to estimate the impact of the real effective exchange rate and the deposit rate on the money demand function in Vietnam, and their CUSUM and CUSUMQ tests were also unstable.…”

Section: Resultsmentioning

confidence: 99%

The Impact of Interest Rate on Exchange Rate Within ASEAN Countries: Evidence from Linear and Nonlinear ARDL Frameworks

Ahmed

Mazlan

2021

Global Journal of Emerging Market Economies

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This study examines the symmetric and/or asymmetric effects of changes in the interest rate on exchange rate of the ASEAN countries. It further aims to compare these linkages by using a dataset consisting of 48–68 quarterly data items, ranging over the period 2002–2017, of the ASEAN countries. Using both the linear autoregressive distributed lag (ARDL) and nonlinear ARDL (NARDL) approaches, the findings indicate that these effects vary from one country to another. We observe that changes in interest rates have short-run symmetric effects on the exchange rates, which also hold in the long run for five ASEAN countries, namely, Cambodia, Malaysia, Thailand, Vietnam, and Singapore. On the other hand, changes in interest rates have asymmetric (negative) effects on the exchange rates, which also hold in the long run for seven ASEAN countries, namely, Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

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Section: Resultsmentioning

confidence: 99%

The Impact of Interest Rate on Exchange Rate Within ASEAN Countries: Evidence from Linear and Nonlinear ARDL Frameworks

Ahmed

Mazlan

2021

Global Journal of Emerging Market Economies

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“…Meanwhile, inflation and the price of gold have no significant effect. In the long run, the price of gold, the exchange rate, deposit rates, interest rates on government bonds, and inflation have a significant effect on the demand for money [4].…”

Section: Literature Reviewmentioning

confidence: 99%

The Variables Affecting The Volatility of E-Money in Indonesia and Thailand

Aimon¹,

Sentosa²,

Mahatir³

2021

Proceedings of the First International Conference of Economics, Business &Amp; Entrepreneurship, ICEBE 2020, 1st October 2020,

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“…It is not only for transaction purpose but also for precautionary and speculative motivation. In Vietnam, there are a few empirical types of research such as Long and Hien (2018) and Nguyen and Pfau (2010) which studies the money demand function. All of these studies used a simple test like CUSUM and CUSUM square to confirm money demand stability, so they could not resolve the changes in the monetary policy and financial liberalization, especially in a developing country like Vietnam.…”

Section: Introductionmentioning

confidence: 99%

Robustness of demand for money analysis in Vietnam: A time-varying cointegration approach

al.¹

2018

Int. j. adv. appl. sci.

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In empirical macroeconomics, there has been increasing interest in exploring determinants and validity model estimation of demand for money. Among them, the issue of stability has been recognized complicated due to many factors such as different opportunity cost variables, transforming economy process, financial innovation regime, and model estimation. This paper focuses on analyzing the money demand in Vietnam in the period Dec 2003 through Feb 2016. Using a time-varying cointegration approach, which is expected to overcome structural change and economic cycle, we can provide a more precise conclusion for the elasticities of money demand. This method allows evaluating some proxy variables to perform a possible model under considering the mentioned cointegration. The main findings figure out income positively affects money demand even when changing the proxy of opportunity cost variables. The scope of interest rate elasticity is overestimated when missing stock price, real exchange rate and consumer price index in the model estimation. However, it is significantly negative with money demand. Other favorable findings are the positive stock price and the negative real exchange rate effects on money demand. By empirically studying, this research shows the time-varying cointegration method can strengthen the robustness of demand for money analysis in Vietnam.

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Determinants and Stability of Demand for Money in Vietnam

Cited by 4 publications

References 8 publications

The Impact of Interest Rate on Exchange Rate Within ASEAN Countries: Evidence from Linear and Nonlinear ARDL Frameworks

The Impact of Interest Rate on Exchange Rate Within ASEAN Countries: Evidence from Linear and Nonlinear ARDL Frameworks

The Variables Affecting The Volatility of E-Money in Indonesia and Thailand

Robustness of demand for money analysis in Vietnam: A time-varying cointegration approach

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