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The Impact of Modern Technology on Demand for Money in Iran

Author

Listed:
  • Amir Mansour Tehranchian

    (Assistant Professor of Economics, Department of Economics, University of Mazandaran)

  • Ahmad Jafari Samimi

    (Professor of Economics, University of Mazandaran)

  • Aghdas Yazdandoust

    (M.A Student of Economics, University of Mazandaran.)

Abstract

This paper examines the impact of modern technology including credit cards, automatic teller machines (ATM) and electronic funds of transfer at the Point-Of-Sale (POS) on money demand for Iran Using seasonal data for Iran 2001-2008. For this purpose, money demand function has been estimated on the basis of Rinaldian model (2001) by ARDL approach. Our findings indicate that the long-run impact of modern technology on demand for money is strongly greater than short-run. We have also shown that, as a result of increase in the number ATMs and credit cards, the demand for currency will increase in both short and long runs. Whereas the impact of increase in POS on demand for currency is negative. In addition, the error correction coefficient is 0.49 indicates that 49 percent of short-run fluctuations in money demand will be settled in long-run.

Suggested Citation

  • Amir Mansour Tehranchian & Ahmad Jafari Samimi & Aghdas Yazdandoust, 2012. "The Impact of Modern Technology on Demand for Money in Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 17(2), pages 133-148, spring.
    • Handle: RePEc:eut:journl:v:17:y:2012:i:2:p:133
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    Citations

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    Cited by:

    1. Shaliza Azreen Mohd Zulkifli, 2014. "Money: The art of keeping it," Proceedings of International Academic Conferences 0902523, International Institute of Social and Economic Sciences.
    2. Courage Mlambo and Steven Kayambazinthu Msosa, 2020. "The Effect of Financial Technology on Money Demand: Evidence from Selected African States," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 366-373.
    3. Erika Arraño & Juan Pablo Cova, 2018. "The Chilean experience of a universal access debit card," IFC Bulletins chapters, in: Bank for International Settlements (ed.), The role of data in supporting financial inclusion policy, volume 47, Bank for International Settlements.

    More about this item

    Keywords

    Money demand; ATM; POS; Credit card; ARDL;
    All these keywords.

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