Labour Productivity and Money Demand Behavior in Zanzibar

Authors

  • Mamudu Daffay PhD. Lecturer, Faculty of Arts and Social Sciences’, Department of Economics, Zanzibar University, P.O.Box 2440 Zanzibar, Tanzania
  • Salma Saleh Ali Master Candidate, Zanzibar University, Department of Economic Statistics, Office of the Chief Government Statistician, Zanzibar, Tanzania

Keywords:

Autoregressive distributive lag, Error correction, Money demand, Labour Productivity

Abstract

This study examines the relationship between labour productivity and money demand behaviour in Zanzibar. We estimate a model with a ARDL specification and bound test for the cointegration and the long run relationship. This paper also offers support to the explanation that if policy-makers are able to conduct proper monetary policies in a timely manner, they might necessarily influence labour productivity permanently following “well-understood” policy rules as the two variable have a positive relationship. Finally, our evidence also points out that causality relationship is from labour productivity to money demand.

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Published

2021-01-15

How to Cite

Daffay, M. ., & Ali, S. S. . (2021). Labour Productivity and Money Demand Behavior in Zanzibar. International Journal of Sciences: Basic and Applied Research (IJSBAR), 55(1), 201–210. Retrieved from https://gssrr.org/index.php/JournalOfBasicAndApplied/article/view/12146

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