Demand for money in Namibia: An ardl bounds testing approach

Loading...
Thumbnail Image

Date

2013

Journal Title

Journal ISSN

Volume Title

Publisher

Asian Online Journals

Abstract

This paper examines the demand for money in Namibia. Time series techniques such as unit root test, cointegration and Autoregressive Distributed Lag (ARDL) approach were utilized on quarterly data for the period 2000:Q1 to 2012:Q4. The results based on the unit root test shows that the variables are integrated of order one. The bound testing approach to cointegration reveal that there is no cointegration among real money aggregates (M1 and M2), real income, inflation and interest rate. Therefore, the stability of demand for money function could not be established.

Description

Keywords

Unit root, Cointegration, Bounds test, Namibia, Money demand

Citation

Sheefeni, J. P. S. (2013). Demand for money in Namibia: An ardl bounds testing approach. Asian Journal of Business and Managemen, 01(03), 65-71