• Login
    View Item 
    •   SU+ Home
    • Research and Publications
    • Strathmore Institute of Mathematical Sciences (SIMs)
    • SIMs Projects, Theses and Dissertations
    • BBSE Research Projects
    • BBSE Research Projects (2018)
    • View Item
    •   SU+ Home
    • Research and Publications
    • Strathmore Institute of Mathematical Sciences (SIMs)
    • SIMs Projects, Theses and Dissertations
    • BBSE Research Projects
    • BBSE Research Projects (2018)
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Money supply, GDP and price level causality and long-run relationship in Kenya : an empirical analysis

    Thumbnail
    View/Open
    Full-text Undergraduate project (13.13Mb)
    Date
    2018
    Author
    Mukesh, Barot Kaksha
    Metadata
    Show full item record
    Abstract
    This research study is mainly based on the fundamental relationship between money supply, prices and the gross domestic product in Kenya. The quarterly time series data of real Gross Domestic Product (GDP), money supplies (MS) and consumer price index (CPI) for the period 2000-2016 were used. The stationary properties of the data series were investigated using the Augmented Dickey Fuller method. To investigate on the existence of a long run relationship among these macroeconomic variables, Co-integration analysis has been employed. To explore the short run direction of causality between GDP, CPI and MS, the Granger causality test has been applied. The direction of causation between CPI and broad money variable M3 was found to be unidirectional from CPI to M3 without any feedback. Regarding the causal relationship between GDP and money supply, the analysis suggests that the causation runs from M1 to GDP, but GDP does not cause M1 The Co-integration analysis established a co-integrating relationship thus suggesting that there is a long run relationship existing among the three macro-economic variables.
    URI
    http://hdl.handle.net/11071/6486
    Collections
    • BBSE Research Projects (2018) [29]

    DSpace software copyright © 2002-2016  DuraSpace
    Contact Us | Send Feedback
    Theme by 
    Atmire NV
     

     

    Browse

    All of SU+Communities & CollectionsBy Issue DateAuthorsTitlesSubjectsThis CollectionBy Issue DateAuthorsTitlesSubjects

    My Account

    Login

    DSpace software copyright © 2002-2016  DuraSpace
    Contact Us | Send Feedback
    Theme by 
    Atmire NV