The currency ratio in Tanzania: an econometric analysis
Michael Ndanshau ()
MPRA Paper from University Library of Munich, Germany
Abstract:
This study tested some key hypotheses on the determinants of the currency ratio in Tanzania. The econometric results suggest that real income is, as theorized, negatively related to and a significant determinant of the currency ratio in Tanzania. The estimated income elasticity coefficient, found to be far less than unity, suggests there is poor substitution between currency and demand deposits in Tanzania. The results also showed that expected inflation was negatively related to the currency ratio in Tanzania. While the structural adjustment programme was found to increase and shift upward the currency ratio function in Tanzania, the liberalization of the financial sector was found to shift decrease and shift downward the currency ratio function. Most institutional variables were found to lack the expected sign and significance in explaining the currency ratio in Tanzania, probably because of inadequacy of the proxies used.
Keywords: Currency ration; Tanzania; econometric analysis (search for similar items in EconPapers)
JEL-codes: E51 (search for similar items in EconPapers)
Date: 2004-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Published in African Development Review No. 2.Vol. 1(2004): pp. 269-286
Downloads: (external link)
https://mpra.ub.uni-muenchen.de/36871/1/MPRA_paper_36871.pdf original version (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36871
Access Statistics for this paper
More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().