Titre |
Analysis of the Determinants of the Demand for Money in the Franc Zone: A Study of Panel Data |
Auteurs |
HOUNSOU RÉMY [1],
|
Journal: |
American Based Research Journal |
Catégorie Journal: |
Internationale |
Impact factor: |
0 |
Volume Journal: |
6 |
DOI: |
ISSN (2304-7151) |
Resume |
This study uses panel data covering the period 1985-2015 to analyze the determinants and long-term
behavior of the demand for money function in the Franc Zone. The empirical results based on OLS, FMOLS and
DOLS methods suggest that monetary aggregates in the narrow sense (m1-p) or in the broad sense (m2-p) are related
to the following internal explanatory variables: income, inflation and credit to the economy and the following external
explanatory variables: the change in the real exchange rate of the CFA Franc relative to the US dollar and the
difference between the interest rate on deposits in France and that of the countries in the Franc Zone. Moreover, the
results indicate that these variables are for the most part non-stationary in level but that there exists between them a
long-term cointegration relation which makes the two functions of demand for money stable. These results are robust
and attest to the usefulness and effectiveness of the econometric analysis of non-stationary panel data in the
institutional framework of the Franc Zone. |
Mots clés |
money demand, Zone Franc, Panel data, Unit root tests, Cointegration tests |
Pages |
42 - 53 |
Fichier |
(PDF) |