Econometric Approach to Estimating Money Supply for the SDGs in ASEAN+4 Countries

Muh Arman Maula; Basri Bado; Abd Rahim; Sri Astuty; Muhammad Syafri

doi:10.55227/ijerfa.v4i2.419

Authors

Muh Arman Maula Faculty of Economic & Business, Universitas Negeri Makassar, Indonesia
Basri Bado Faculty of Economic & Business, Universitas Negeri Makassar, Indonesia
Abd Rahim Faculty of Economic & Business, Universitas Negeri Makassar, Indonesia
Sri Astuty Faculty of Economic & Business, Universitas Negeri Makassar, Indonesia
Muhammad Syafri Faculty of Economic & Business, Universitas Negeri Makassar, Indonesia

DOI:

https://doi.org/10.55227/ijerfa.v4i2.419

Keywords:

Money Supply, Card-Based Payment Instruments, Monetary Stability

Abstract

The focus of this study is to analyse the impact of debit card transactions, credit card transactions and income per capita on the money supply in ASEAN countries, including the influence of the Sustainable Development Goals (SDGs). The study uses panel data from ASEAN countries during the period 2004–2023, employing the Least Squares Dummy Variable method. The study found that debit and credit card usage increased the money supply in ASEAN countries. However, there is a negative impact on income per capita through money supply, as income per capita is only a source of income. The implications of these findings are very important for central banks in optimising their monetary policies through digital card payment instruments.

References

Astuty, S. (2023). Analysis of Non-Cash Transactions, Debit Cards, Credit Cards, and Electronic Money, on the Money Supply in Indonesia. Economics and Business Journal (ECBIS), 2(1), 51–60. https://doi.org/10.47353/ecbis.v2i1.104

Bajrami, R., Tafa, S., Gashi, A., & Hashani, M. (2025). Analysing the impact of money supply on economic growth: A panel regression approach for Western Balkan countries (2000–2023). Regional Science Policy & Practice, 17(2), 100159. https://doi.org/10.1016/j.rspp.2024.100159

Bara’ Tiku, I., Abd. Rahim, Sri Astuty, Diah Retno Dwi Hastuti, & Muhammad Syafri. (2025). Analysis of Factors Affecting Broad Money of Five ASEAN Countries. International Journal of Economics (IJEC), 4(1), 274–286. https://doi.org/10.55299/ijec.v4i1.1291

Brooks, C. (2019). Introductory Econometrics for Finance. (4th ed.). Cambridge University Press.

Caron, J., Fally, T., & Markusen, J. (2020). Per capita income and the demand for skills. Journal of International Economics, 123, 103306. https://doi.org/10.1016/j.jinteco.2020.103306

Dia, E., & VanHoose, D. (2025). Banking and monetary policy in a monetary union. International Review of Economics & Finance, 99, 103987. https://doi.org/10.1016/j.iref.2025.103987

Fernández, J. A. (2024). “Banking systems in the euro zone and transmission of monetary policy.” Central Bank Review, 24(1), 100148. https://doi.org/10.1016/j.cbrev.2024.100148

Golpe, A. A., Sánchez-Fuentes, A. J., & Vides, J. C. (2023). Fiscal sustainability, monetary policy and economic growth in the Euro Area: In search of the ultimate causal path. Economic Analysis and Policy, 78, 1026–1045. https://doi.org/10.1016/j.eap.2023.04.038

Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). McGraw-Hill.

Ho, S.-H., & Saadaoui, J. (2022). Bank credit and economic growth: A dynamic threshold panel model for ASEAN countries. International Economics, 170, 115–128. https://doi.org/10.1016/j.inteco.2022.03.001

Kulu, E., & Bondzie, E. A. (2024). Mobile money, credit to deposit ratio and monetary policy: Empirics from Ghana. Transnational Corporations Review, 16(3), 200060. https://doi.org/10.1016/j.tncr.2024.200060

Mishkin, F. S. (2016). The Economics of Money, Banking, and Financial Markets (12th ed.). Pearson.

Putra, H. S., Huljannah, M., Anis, A., & Azhar, Z. (2021). Debit and Credit Cards: Money Velocity Risks. Jurnal Ekonomi & Studi Pembangunan, 22(2), 228–243. https://doi.org/10.18196/jesp.v22i2.11208

Rahim, Abd., Hastuti, D. R. D., Astuty, S., Kamaruddin, C. A., & Sabar, W. (2023). The approach of dummy variable regression with exponential function: An estimated of the marketing margin of fresh marine fish. 020021. https://doi.org/10.1063/5.0154328

Son, J., Ryu, D., & Webb, R. I. (2023). Central bank digital currency: Payment choices and commercial bank profitability. International Review of Financial Analysis, 90, 102874. https://doi.org/10.1016/j.irfa.2023.102874

Suoyai, E., Agada Franklin, A., Tema, L., & Boloekeye, M. (2018). Impact of Money Supply on Some Macroeconomic Variables on the Nigerian Economy. International Journal of Scientific and Research Publications (IJSRP), 8(8). https://doi.org/10.29322/IJSRP.8.8.2018.p8079

Widayati, N., Zulfikar, A. L., & Mahardika, S. G. (2023). Pengaruh Pendapatan Perkapita Terhadap Jumlah Uang Beredar di Indonesia. IJMA (Indonesian Journal of Management and Accounting), 4(2), 116. https://doi.org/10.21927/ijma.2023.4(2).116-129

Yang, C., Lin, Z., Li, J., & Chen, C. (2025). Sustainability and challenges of renewable energy in ASEAN countries: Insights from the Indo-Pacific Economic Framework. Environmental Development, 54, 101145. https://doi.org/10.1016/j.envdev.2025.101145