Demand for Money By Business Sector in a Developing Country: Evidence from Pakistan
Kashmir Economic Review, Vol. 7, No. 1, 1999
8 Pages Posted: 19 Mar 2007
The paper provides estimate of money (M2) demand for business sector in Pakistan. By using cointegartion analysis and erropr correction mechanism the study found that business sectors money demand behaviour is completely different from the aggregate money demand function. The rate of interest on advances is important determinent of money demand by the business sector.
Keywords: Money Demand, Business Sector, Unit Root, Cointegration, Error Correction, Pakistan
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