Cilt / Volume XIII Sayı / Number 2 Ekim / October 2020 YDÜ Sosyal Bilimler Dergisi / NEU Journal of Social Sciences 129 [Araştırma Makalesi / Research Article] DETERMINANTS OF MONEY DEMAND FUNCTION: A PANEL ARDL APPROACH ON SELECTED EMERGING COUNTRIES Harun BAL * Ayat ESAA ** Esma ERDOĞAN *** ABSTRACT Central Banks have the authority to influence many macroeconomic variables by changing the money aggregates. The interaction between the money supply changes and other macroeconomic variables contributes to the determination of the most appropriate policy rules. Therefore, it emphasizes the significance of the stability and the examination of the money demand function. This study investigates the short-run and long-run relations amongst money demand and its determinants during the period of 1996-2017 for nine selected Emerging Economies. These are, Brazil, Chile, China, India, Hungary, Malaysia, Mexico, South Africa, Thailand. To reach this goal, a panel Autoregressive Distributed Lag (ARDL) approach was used to determine the dynamics of money demand employing the pooled mean group (PMG) estimator. Empirical results affirm the presence of a long-term relationship among real money demand and its determinants; real income and real interest rate. Whereas the short-run estimations show the insignificance of real interest rate coefficients. An important policy implication that can be derived from these results is that fiscal policy shall be used, rather than monetary policy, to stabilize emerging-market economies. Keywords: Panel ARDL approach, Emerging Markets, Money Demand ÖZ PARA TALEBİ FONKSİYONUNUN BELİRLEYİCİLERİ: SEÇİLMİŞ GELİŞMEKTE OLAN ÜLKELERDE BİR PANEL ARDL YAKLAŞIMI Merkez Bankaları para arzını değiştirerek ekonomide birçok makroekonomik değişkeni etkileyebilme gücüne sahiptir. Para arzında oluşabilecek değişimlerle diğer makroekonomik değişkenler arasındaki etkileşim, en uygun politika kurallarının belirlenmesine katkı sağlayarak, para talebi fonksiyonun tahmini ve istikrarlılığının önemini vurgulayacaktır. Bu çalışmada 1996-2017 yılları arasında Yükselen Piyasa Ekonomileri içerisinde yer alan * Prof. Dr., ukurova niversity, Department of Economics (harunbal@cukurova.edu.tr) 0000-0003-0878-8253 ** Ph.D. Candidate, ukurova niversity, Department of Economics (Ayatesaa@outlook.com) 0000-0002-8521-0896 *** Research Assistant, ukurova niversity, Department of Economics (esmaerdogan@cu.edu.tr) 0000-0002-7324-8512 YDÜ Sosyal Bilimler Dergisi C. XIII, No. 2. (October 2020) Geliş: 02.07.2020 Kabul: 20.10.2020 Bu makaleden alıntı yapmak için: Bal, H., Esaa, ., & Erdoğan, E. (2020, October). Determinants of money demand function: A panel ARDL approach on selected emerging countries. YDÜ SOSBİLDER, 13(2), 129-150.