Empirical Evidence on the Long-Run Money Demand Function in the Gulf Cooperation Council Countries
Helmi Hamdi (),
Ali Said and
Rashid Sbia ()
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Ali Said: Strayer University, United States,
International Journal of Economics and Financial Issues, 2015, vol. 5, issue 2, 603-612
The broad aim of this paper is to estimate the money demand function for the case of six Gulf Cooperation Council countries. By applying panel cointegration tests, the empirical results reveal strong evidence of cointegration between the variables of the model for individual countries as well as for the panel. Moreover, the results support the existence of a stable money function in the long-run estimation. The Granger non-causality test due to Toda and Yamamoto (1995) procedure shows evidence of a bidirectional causal relationship between money demand and income for panel estimation. At an individual level, the results change from one country to another one.
Keywords: Money Demand; Gulf Cooperation Council; Panel Cointegration; Toda–Yamamoto (search for similar items in EconPapers)
JEL-codes: C22 C23 E41 E52 F41 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2015-02-33
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