International Journal of Economics and Financial Research
Online ISSN: 2411-9407
Print ISSN: 2413-8533
Print ISSN: 2413-8533
Volume 6 Number 2 February 2020
Assessing the Stability of Money Demand Function in Saudi Arabia
Authors: Moayad H. Al Rasasi
This paper aims to investigate the stability of money demand function for Saudi Arabian economy over the period of 2007:Q1-2018:Q4 by applying various structural break tests. The obtained results from the utilized tests reveal the stability of money demand function. The estimated money demand function also shows the impact of income on money demand is consistent with theory expectations in addition to the positive impact of exchange rate and interest rate on the demand for money. Moreover, the estimated error correction model indicates that money demand needs about 5 quarters to adjust to its equilibrium path in case it deviates from the steady state condition.
Factors Affecting Coffee Market Supply of Smallholder Farm Household: The Case of Gewata District Kaffa Zone, Southwest Ethiopia
Authors: Engida Gebre
Ethiopia has a broad genetic diversity among its coffee varieties. Despite high coffee production potential of the district, the market and marketing system of the area is generally dominated by conventional system of marketing and producers are forced to sale directly for conventional transaction root that do not provide premium price for their coffee produce and results low market margins. Both primary and secondary data were used for this study. Descriptive statistics like: percentage, frequency, mean and standard deviation and econometric model which is stages least square (2SLS) were used to analyze the data. The result of econometric analysis of 2SLS regression shows that four variables (which are education level of household head, membership to coffee cooperative, transport ownership and quantity of coffee produced) positively and significantly affected market supply of coffee. However, distance to the nearest market affected it market supply of coffee negatively and significantly. Therefore, policy implication drawn from the findings aimed at strengthening farmers coffee cooperative and enhancing the financial capacity of cooperative with functional collection center, improving accessibility of transport services and developing infrastructure,improving farmers’knowledge through adult education as well as their experience sharing with other coffee producing farmers, improving productivity through strengthening supportive institutions(extension service provider).