International Science and Technology Journal

The objective of this research is to examine the relationship between money supply Libyan economy and GDP per capital during the period (1980-2014) and analysis, and through review of the theoretical framework and its identification problematic research study used a co-integration test to see the direction of integration in short and long term also used Angel Granger test of the relationship of causality between the variables, the study reached several conclusions, including the absence of a joint integration between variables and therefore used (VAR) to test the study hypothesis, which indicates the presence of the impact of money supply to GDP, It concluded there This study aimed to determine the relationship between the money supply in the is no impact for money supply narrow and wide on the gross domestic product, as well as, the Granger test indicates that there is causal relationship between money supply and gross domestic product، thus GDP is the variable influencing the money supply, and attributed the researcher to the nature of the Libyan economy, which is an oil the overall domestic product. The recommendation of the study is the need to follow the effectiveness of fiscal and monetary policies to diversify income sources in Libyan economy and development of the banking sector for increasing the level of its contribution to GDP