A revalidation of the savings–growth nexus in Pakistan

Tang, Chor Foon; Tan, Bee Wah

doi:10.1016/j.econmod.2013.10.012

Cited by 22 publications

(23 citation statements)

References 47 publications

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“…As indicated in Table 4 concurs with empirical studies by Aghion et al [38], Tang and Tan [43], and Jagadeesh [35], but opposes Nwanne [44] who suggested that domestic savings have a negative and significant impact on economic growth in Nigeria.…”

Section: Vecm Long-run Estimation Resultssupporting

confidence: 77%

Revisiting Domestic Savings and Economic Growth Analysis in Ghana

Siaw¹,

Enning²,

Pickson³

2017

TEL

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This study set out to ascertain the relationship between domestic savings and economic growth in the midst of antecedent variables with yearly data during the period of 1970-2013. Using Johansen cointegration test and vector error correction model, the study found that, in the long-run, consumer price index, trade openness, foreign direct investment, and domestic savings have positive significant impacts on economic growth. With respect to the shortrun estimates, the lags in domestic savings have negative but insignificant effects on economic growth. It is, therefore, incumbent on the government to uphold, guard, and sustain the political stability so jealously since it can create a conducive financial atmosphere necessary to mobilise savings in order to improve the growth rate of the Ghanaian economy. It is also recommended that the central bank pays a particular attention to rural savings mobilisation through the regulation of mobile banking by allowing the telecommunication companies to also pay interest to savers on their mobile deposits and establishment of banking financial institutions at least in each district in Ghana.

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Section: Vecm Long-run Estimation Resultssupporting

confidence: 77%

Revisiting Domestic Savings and Economic Growth Analysis in Ghana

Siaw¹,

Enning²,

Pickson³

2017

TEL

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show abstract

“…Similarly, following the view that savings cause economic growth, Masih and Peters (2010), Tang and Tan (2014), Patra et al (2017), and Tang and Chua (2012) concluded that savings precede growth. A study on the savings and growth nexus in India by Singh (2010) found long-run effects of savings on income.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, the literature also encompasses studies accounting the reverse causality between savings and economic growth, that is, that growth precedes savings. Keynesian theory argued that savings are a leakage dependent on the level of income or its growth (Tang and Tan 2014). Carroll and Weil (1994) asserted that the effect of savings on growth may be overstated.…”

Section: Literature Reviewmentioning

confidence: 99%

Savings, investment, and growth in Nepal: an empirical analysis

Joshi¹,

Thapa

Bist

2019

Financ Innov

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This study analyzes the relationship between savings, investment, and economic growth in Nepal over 1975-2016. The structural breaks in the variables have been accounted for using the (Zivot and Andrews's, J Bus Econ Stat 10: 251-270 1992) unit root test along with (Gregory and Hansen's, Oxf Bull Econ Stat 58: 555-560, 1996) cointegration approach. The ARDL approach to cointegration in the presence of structural breaks has also been utilized to analyze the long-and short-run dynamics of savings, investment, and growth in Nepal. The results show structural breaks in the real GDP per capita during 2001 when the Royal Massacre and a state of emergency have taken place in Nepal. After allowing for this structural break, evidence of a cointegration relationship amongst savings, investment, and economic growth was identified. The estimates of the ARDL approach suggest that investment has a significant and positive impact on economic growth. However, gross domestic savings have a negative impact on growth in the long run. These results clearly show weaknesses of the economy in mobilizing savings into productive sectors.

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“…Since t z is an error term/white noise process, it sis theoretical band is flat equals Thus, combining Equations (12) and (14), the spectral matrix in Equation 5evaluated at zero frequency becomes:…”

Section: Letmentioning

confidence: 99%

“…Several theoretical propositions have been made and laurel credited to various scholars who have made contributions to the development of concepts aimed at resolving the puzzle around the two subjects. Despite efforts being made, reconciling the equality of the two concepts at equilibrium has led to more divergence in view rather than convergence [1]- [12]. The main source of confusion arose from the failure of critics to recognize that while savings and investment are always equal, they are not necessarily so in equilibrium.…”

Section: Introductionmentioning

confidence: 99%

Revalidating Saving-Investment Comovement in Nigeria: Surprises, Stylized Facts and Explanations

Joseph¹,

Shobande²

2018

TEL

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Numerous studies have attempted to examine the relationship between savings and investment without a consensus conclusion. Interestingly, there have been profound findings, arguments and scholarly contributions on the subject by different authors, researchers and scholars from most first class institutions around the world. To further heighten the argument around the subject, Feldstein-Horioka in his hypothesis, after running many regression, suggests that saving-investment co-movement under perfect capital mobility remains a puzzle. This paper therefore proposes a reconciliation model to revalidate the co-movement between savings and investment using the dataset sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin between 1981 and 2017. The approach employed followed the Autoregressive Distributed Lag (ARDL) and Granger Causality that presumed economic variables reactions are not instantaneous and effects require a feedback mechanism delay for some period. The results suggest the existence of strong positive correlation between national savings and business investment, proposing that policies/initiatives to increasing the domestic resource mobilization through national saving are crucial for stimulating rate of investment in Nigeria.

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A revalidation of the savings–growth nexus in Pakistan

Cited by 22 publications

References 47 publications

Revisiting Domestic Savings and Economic Growth Analysis in Ghana

Revisiting Domestic Savings and Economic Growth Analysis in Ghana

Savings, investment, and growth in Nepal: an empirical analysis

Revalidating Saving-Investment Comovement in Nigeria: Surprises, Stylized Facts and Explanations

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