E-money and Stock: Empirical Evidence from Indonesia and Thailand
Abstract
E-money is a type of electronic or digital payment that replaces cash payments. These technological developments will have an impact on reducing the use of cash. The use of e-money possibly affects stock, which is a form of securities. Therefore, the purpose of this study is to assess the relationship between e-money and stock. The study uses the two-stage least squares model to analyze quarterly data for 2011Q1-2019Q4. The study found no relationship between stock and e-money in Indonesia, whereas, in Thailand, there was a relationship between stock and e-money. There is no relationship between e-money and stock in Indonesia and Thailand. The study recommends the Indonesian government or central bank adopt the policies that Thailand has implemented in stock that affects e-money. Stocks can affect the use of e-money due to the profits or losses of the stock that will impact the use of e-money.
JEL Classification: D53, E40
How to Cite:
Aimon, H., Sentosa, S. U., & Mahatir, M. R. (2021). E-money and Stock: Empirical Evidence from Indonesia and Thailand. Signifikan: Jurnal Ilmu Ekonomi, 10(1), 139-148. https://doi.org/10.15408/sjie.v10i1.15380.
References
Al-laham, M., & Al-tarawneh, H. (2009). Development of Electronic Money and Its Impact on the Central Bank Role and Monetary Policy. The Issue in Informing Science and Information Technology, 6, 1-11.
Bahmani-oskooee, M., & Nayeri, M. M. (2020). Policy Uncertainty and The Demand for Money in the United Kingdom: Are the Effects Asymmetric? Economic Analysis and Policy, 66, 76-84. https://doi.org/10.1016/j.eap.2020.02.005
Belongia, M. T., & Ireland, P. N. (2019). The Demand for Divisia Money: Theory and Evidence. Journal of Macroeconomics, 61, 103-128. https://doi.org/10.1016/j.jmacro.2019.103128
Chhapra, I. U., Ali, M. U., Zehra, S. F., & Naz, F. (2018). Monetary Policy and Financial Asset Prices: Empirical Evidence from Pakistan. Signifikan: Jurnal Ilmu Ekonomi, 7(2), 149–160. https://doi.org/10.15408/sjie.v7i2.7099.
Igamo, A. M. F. T. A. (2018). The Impact of Electronic Money on The Efficiency of The Payment System And The Substitution of Cash In Indonesia. Sriwijaya International Journal of Dynamic Economics and Business, 2(3), 237–254.
Jawadi, F., & Sousa, R. M. (2013). Money demand in the Euro Area, the US, and the UK: Assessing the Role of Nonlinearity. Economic Modelling, 32, 507–515. https://doi.org/10.1016/j.econmod.2013.02.009
Kartika, V. T., & Nugroho, A. B. (2015). Analysis on Electronic Money Transactions on Velocity Of Money in Asean-5 Countries. Journal of Business and Management, 4(9), 1008–1020.
Lioui, A., & Tarelli, A. (2019). Macroeconomic Environment, Money Demand, and Portfolio Choice. European Journal of Operational Research, 274(1), 357–374. https://doi.org/10.1016/j.ejor.2018.09.039
Majid, M. S. A. (2018). Assessing Volatilities of Monetary Policy and Their Effects on the Islamic and Conventional Stock Markets in Indonesia. Signifikan: Jurnal Ilmu Ekonomi, 7(2), 161–172. https://doi.org/10.15408/sjie.v7i2.7352.
Neda, P.-K. (2014). The Use of Electronic Money and its Impact on Monetary Policy. Journal of Contemporary Economic and Business Issues Provided, 1(2), 79–92.
Sidik, Z. N., Achsani, N. A., & Pasaribu, S. H. (2018). Financial Inclusion and Demand for Money: A Dynamic Panel Data Approach. Signifikan: Jurnal Ilmu Ekonomi, 7(2), 137–148. https://doi.org//10.15408/sjie.v7i2.6838.
Tiberiu, C., Pépin, D., & Miller, S. M. (2019). The Micro-foundations of an Open Economy Money Demand: An Application to Central and Eastern European Countries. Journal of Macroeconomics, 60, 33–45. https://doi.org/10.1016/j.jmacro.2019.01.002
Todea, A., & Ple, A. (2013). The Influence of Foreign Portfolio Investment on Informational Efficiency: Empirical Evidence from Central and Eastern European Stock Markets. Economic Modelling, 33, 34–41. https://doi.org/10.1016/j.econmod.2013.03.017
DOI: 10.15408/sjie.v10i1.15380
Refbacks
- There are currently no refbacks.
