The impact of advertising expenditure on the demand for money in Malaysia
The main purpose of this study is to determine the characteristic of money demand function in Malaysia by including advertising expenditure as a new variable using annual data over the period of 1978 to 2008. Developed econometric techniques of unit root tests, cointegration tests, vector error-c...
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| Main Author: | |
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| Format: | Final Year Project Report |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak, (UNIMAS)
2011
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| Online Access: | http://ir.unimas.my/id/eprint/6441/8/Lai%20Kim%20Lin.pdf http://ir.unimas.my/id/eprint/6441/ |
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| Summary: | The main purpose of this study is to determine the characteristic of money demand
function in Malaysia by including advertising expenditure as a new variable using
annual data over the period of 1978 to 2008. Developed econometric techniques of
unit root tests, cointegration tests, vector error-correction modeling and Granger
causality test have been employed. The findings verify that the money demand in term
of real M2 of Malaysia is significant. The money demand function is stable in the
long-run. All of the independent variables include real GDP, saving deposit rate,
exchange rate and advertising expenditure can affect the demand for money in the
short-run. In addition, the money demand function is fitted excellently with the
theoretical concept of money demand. |
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