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

Simple item page
dc.contributor.authorMukesh, Barot Kaksha
dc.date.accessioned2019-05-08T07:11:58Z
dc.date.available2019-05-08T07:11:58Z
dc.date.issued2018
dc.descriptionA Research project Submitted in partial fulfillment of the requirements for the degree of Bachelor of Business Science in Financial Economics at Strathmore Universityen_US
dc.description.abstractThis 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.en_US
dc.identifier.urihttp://hdl.handle.net/11071/6486
dc.language.isoen_USen_US
dc.publisherStrathmore Universityen_US
dc.subjectGDPen_US
dc.subjectprice levelsen_US
dc.subjectmoney supplyen_US
dc.subjectconsumer price indexen_US
dc.titleMoney supply, GDP and price level causality and long-run relationship in Kenya : an empirical analysisen_US
dc.typeThesisen_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Money supply, GDP and price level causality and long-run relationship in Kenya.pdf
Size:
13.13 MB
Format:
Adobe Portable Document Format
Description:
Full-text Undergraduate project
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
BBSE Research Projects (2018)