The Impact of Structure Changes in Business Sector on Aggregate Money Demand in China
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| Title | The Impact of Structure Changes in Business Sector on Aggregate Money Demand in China
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| Author | Wang Yuwei and Fan Conglai |
| Organization | Department of Economics, Nanjing University |
| Email | wangyw@nju.edu.cn,fancl@nju.edu.cn |
| Key Words | Firm’s Money Demand; Aggregate Money Demand; Structure Change in Business Sector; Dynamic Panel Data |
| Abstract | This paper builds money demand function for Chinese firms and makes empirical test based on data of Chinese listed companies. The result shows that Chinese firms of different sizes, geographies, industries and ownerships have different money demand. All those factors have significant impact on total money demand during the transition period. That being said, internal structure change within Business sector is a critical reason for changing of China’s money demand. Therefore, when making and implementing monetary policy, People’s Bank of China should pay much attention to different money demand characteristics of different firms. |
| Serial Number | WP405 |
| Time | 2013-02-21 |
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