Working Papers

Does Money Matter in Developing Economies? Some Results from the Solow Estimator

No.

716

Publisher

Economic Research Forum (ERF)

Date

October, 1997

Topic

E. Macroeconomics and Monetary Economics

Abstract Using the Solow estimator and the technique introduced by Startz, this paper provides strong evidence that money matters to the determination of aggregate output in three Gulf developing economies. This finding is greatly at variance with that of Startz for the U.S. and suggests the need for further improvements in the financial systems of these countries.
Does Money Matter in Developing Economies? Some Results from the Solow Estimator

Research Fellows

Ali Darrat

Professor in Finance, Louisiana Tech University, USA