Nexus Between Money Supply and Economic Development in East Africa Countries: An Empirical Study using ARDL

Abstract

This study assesses the connection between money supply and economic growth in developing countries. The study made use of time series data from the National Bureau of Statistics (NBS) and Bank of Tanzania. The study was looked at using the Auto Regressive Distributed Lag Model (ARDL). The study demonstrates that overall, the money supply has a significant favorable effect on economic expansion. The results demonstrate that the money supply boosts economic growth in underdeveloped nations. The results of the study indicate that, on the whole, the money supply has a significantly favorable effect on economic expansion. According to the results, emerging nations' economies expand faster when there is more money available. In order to forecast the future value of economic growth, the study also recommended that future studies include exogenous variables in autoregressive integrated moving averages.