Velocity of Money Income and Economic Growth in Sudan: Cointegration and Error Correction Analysis

Mohamed, Elwasila Saeed Elamin

doi:10.32479/ijefi.8944

Cited by 6 publications

(8 citation statements)

References 37 publications

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“…The results indicate that one change in the interest rate will change price level by 0.19 percent. The findings are similar with the study conducted by (Yuliadi, 2020;Wang, 2020;Prihatin, et al, 2019;Gatawa, Abdulgafar & Olarinde, 2017;Pinter, 2021;Mohamed, 2020;Akeerebari, 2022). Output (GDP) has a coefficient value of 0.397 and, a t-statistic value is 27.664 with a probability value (P < 1%).…”

Section: Resultssupporting

confidence: 88%

An Empirical Investigation of the Quantity Theory of Money in Pakistan

Kamal,

Haq,

Khan

et al. 2023

BBE

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One of the macroeconomic objective is to have price stability. The quantity theory of money (QTM) explains the nexus between money supply and price level in the economy thus, QTM provides the theoretical framework for monetary policy to bring price stability. Therfore, this study investigates the validity of QTM in Pakistan in time series study. This study applied different econometric techniques, unit root tests, cointegration test, and fully modified ordinary least square (FMOLS) cointegration regression. The variables money supply, price level, interest rate and output are cointegrated in the long run. The results of the FMOLS regression indicate positive and significant effect of money supply on price level henceforth; this study validate the QTM in Pakistan. The study suggests that monetary policy can effectively control the price level in the economy to maintain economic stability and sustain economic growth.

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Section: Resultssupporting

confidence: 88%

An Empirical Investigation of the Quantity Theory of Money in Pakistan

Kamal,

Haq,

Khan

et al. 2023

BBE

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“…The researchers have extensively used the Johansen cointegration model and vector autoregression (VAR) framework for investigating the integration among the stock market indices and examining the influence of stock markets over one another (Anderson et al, 2009; Ely & Salehizadeh, 2001; Hjalmarsson & Österholm, 2010; Lamia & Naziha, 2019; Raj & Dhal, 2008; Wong et al, 2004). Sachdeva et al (2021) use the cointegration theory for examining the interconnectedness of stock markets in six countries: The United States, Germany and Japan from established economies, and Brazil, China and Indonesia from emerging economies.…”

Section: Literature Reviewmentioning

confidence: 99%

“…By permitting diversification across several assets, a well-integrated equities market lowers the cost of capital, boosting investment and economic development. As investment in developing stock markets has increased over a period, the issue of integration has acquired even more support, particularly in Asian countries (Lamia & Naziha, 2019). As a result, the focus has turned to examine the linkages between untapped Asian and African markets in connection with the developed markets (Bhaduri & Samuel, 2009).…”

Section: Introductionmentioning

confidence: 99%

Stock Market Integration Through Internationally Tradable Assets

Keshari,

Gautam

2024

The Indian Economic Journal

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The study examines the influence of tradable assets in integrating the Indian stock market with global stock markets. The movement in the foreign indices has a direct spillover effect on the assets cross-listed on these exchanges in the form of American depository receipts and global depositary receipts, and the effect is simultaneously shifted to the domestic market index due to the dual listing of domestic assets. The findings of the study indicate that there is a prolonged effect of all markets combined on the Indian market during the period, and that the long-term effect between the Indian and US markets is also consistent in the long run, while the Wald test also supports the presence of a short-term effect between the Indian and US markets. Long-term and short-term causation patterns are lacking in the Luxembourg market, illustrating the partial integration of the financial markets. The present study is instrumental for investors in identifying exogenous markets for portfolio diversification, thus enabling businesses to have a global reach. JEL Codes:J C32, C58, D53

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“…In their study using the ECM model, Mubin and Pambudi [29] discovered that E-money transactions, income per capita, and interest rate have a positive influence on money velocity. Mohamed [30] examined the effects of GDP, M2, inflation, investment, domestic credit, government budget, and trade openness on the velocity of money using the VECM estimation. The results indicated that four of the six variables, namely GDP, M2, government budget, and trade openness, positively affect the velocity of money, whereas investment and inflation negatively affect the velocity of money.…”

Section: Literature Reviewmentioning

confidence: 99%

Estimating the effects of electronic money on the income velocity of money in Indonesia

Anwar,

Ayunda,

Suhendra

et al. 2024

ijirss

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This paper investigates the effects of electronic money, exchange rate, inflation, money supply, economic growth, and interest rate on the income velocity of money. We perform the Autoregressive Distributed Lag (ARDL) estimation for Indonesian data from 2009 to 2022 to examine the short-run and long-run estimations. The findings of this paper show that the income velocity of money requires 1.2 years of adjustment time to reach long-run equilibrium. We discover that electronic money and money supply have a considerable negative impact on the income velocity of money in the long term. Meanwhile, the interest rate, exchange rate, and economic growth have a significant positive effect on the income velocity of money in the long run. On the other hand, the findings indicate that in the short run, economic expansion and electronic money have a significant and positive impact on the income velocity of money. Whereas, inflation, interest rate, and money supply have a significant negative effect on the income velocity of money in the short run. Based on these findings, it is absolutely necessary for policymakers to encourage the use of electronic money to boost the income velocity of money and create a more efficient economy. A future study will likely employ cross-country data to compare the findings across samples of countries.

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Velocity of Money Income and Economic Growth in Sudan: Cointegration and Error Correction Analysis

Cited by 6 publications

References 37 publications

An Empirical Investigation of the Quantity Theory of Money in Pakistan

An Empirical Investigation of the Quantity Theory of Money in Pakistan

Stock Market Integration Through Internationally Tradable Assets

Estimating the effects of electronic money on the income velocity of money in Indonesia

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