The paper examines demand for real money balances in six West Africa countries, over the 1985-2014 periods using panel Cointegration technique. The result shows that long run money demand is positively related to real income, inflation rate and inversely related to interest rate spread, real effective exchange rate and US real interest rate. Long run income elasticity is greater than unity and less than unity in short run. All variables are significant except effective exchange rate, thus; both currency substitution and capital mobility hypotheses hold in the long run while capital mobility holds only in the short run. We recommend that monetary aggregate should growth slower than economic growth to maintain price stability, countries should try to maintained stable exchange rate and ensured market driven interest rate policy. Keyword: Demand for Money; Interest Rate Spread; Capital Mobility and Currency Substitution, Panel Analysis.JEL CODE: E41, E52, C33, O11.
In accounting for the gaps in the literature between the period 2011 and 2016, more recent literature – particularly empirical related studies on the topic have been consulted to consolidate on the paper “Foreign Direct Investment in China: Its Sectoral and Aggregate Impact on Economic Growth”. As highlighted by Wei (2013), it is important to recognize and acknowledge that the relationship between FDI and employment is affected by many variables, such as growth of the national population, increased exports, and growth of the domestic economy. Furthermore, as illustrated by Iamsiraroj and Doucouliagos (2015), whilst positive and negative effects may be demonstrated in relation to economic growth, in some countries, no effects can be deduced as regards the relationship between economic growth and FDI in certain other countries. This chapter also aims to accentuate the need for greater focus on environmental issues - as well as poverty alleviation - than is currently the case within the sphere and framework of Carroll's pyramid of Corporate Social Responsibility.
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