The purpose of this study is to apply the monetary approach to the determination of international reserve flows to major Arab oil-exporting countries. These are Iraq, Kuwait, Libya and Saudi Arabia. / Well-defined and stable demand for and supply of money functions must exist for the monetary approach to have predictive power for reserve flows. This study found that the demand for real balances in the designated countries was a stable function of real income and the rate of inflation. In examining the money supply process, the main determinants of the monetary base and hence the money supply proved to be net foreign assets and government expenditures. / This thesis extends the empirical analysis of international reserve flows by providing empirical tests of a two-area model for the small country case. Our empirical results supported the main propositions of the monetary approach to the balance of payments about the effect of the demand for and the supply of money on reserve flows. The growth in domestic price, domestic income and world money supply exerted a positive impact on the reserve flows, while the growth in world income, interest rates, money multiplier and domestic assets had negative impact. The results also supported the validity of the assumption concerning unified world goods markets.
| Identifer | oai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:QMM.72097 |
| Date | January 1984 |
| Creators | Haifa, Said J. |
| Publisher | McGill University |
| Source Sets | Library and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada |
| Language | English |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
| Format | application/pdf |
| Coverage | Doctor of Philosophy (Department of Economics.) |
| Rights | All items in eScholarship@McGill are protected by copyright with all rights reserved unless otherwise indicated. |
| Relation | alephsysno: 000221529, proquestno: AAINL44361, Theses scanned by UMI/ProQuest. |
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