Does domestic saving cause economic growth? A time-series evidence from India

Singh, Tarlok

doi:10.1016/j.jpolmod.2009.08.008

Cited by 59 publications

(42 citation statements)

References 56 publications

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“…GDCF as a percent of GDP more than doubled from 15% to around 38% during the period. These investments in the form of GDCF have led to an increase in the country's production and output measured in terms of GDP (Singh, 2009). This goes well along with the implication of neo-classical growth models which emphasize the importance of savings and investments for economic growth.…”

Section: Introductionmentioning

confidence: 99%

The Estimation of the Cointegration Relationship between Growth, Domestic Investment and Exports: The Indian Economy

Sultan¹,

Haque²

2011

IJEF

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The paper examines the relationship between domestic investment, export and economic growth in India during 1970-71 to 2007-08. Using Johnson's cointegration methodology the study found the presence of a long term relationship between investment, exports and the economic growth of India. The study further shows that only domestic investment significantly contributes to economic growth both in the long run and in the short run. The export, though, has positive relation with economic growth, its contribution has not been found to be significant. The policy implication is that India should continue to focus on domestic investment while diversifying investment towards promoting export sector through investments in infrastructure.

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Section: Introductionmentioning

confidence: 99%

The Estimation of the Cointegration Relationship between Growth, Domestic Investment and Exports: The Indian Economy

Sultan¹,

Haque²

2011

IJEF

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“…As savings increase, the accumulation of physical capital lead to a higher rate of progress of technological level which consequently would lead to an increase in economic growth (Lucas, 1988). Empirical research done by Alguacil et al (2004) and Singh (2009), among others, offer verification to the hypothesis that savings growth boosts economic growth.…”

Section: Savings Tend To Sustained Economic Growthmentioning

confidence: 97%

“…This positive relationship is quantitatively strong and robust to different types of data employed (Attanasio et al, 2000;Banerjee & Duflo, 2005). In an endogenous growth models, Singh (2009) argues that higher rates of saving can have permanent positive effect on economic growth. As savings increase, the accumulation of physical capital lead to a higher rate of progress of technological level which consequently would lead to an increase in economic growth (Lucas, 1988).…”

Section: Savings Tend To Sustained Economic Growthmentioning

confidence: 99%

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The Role of Savings in Reducing the Effect of Oil Price Volatility for Sustainable Economic Growth in Oil Based Economies: The Case of GCC Countries

Al‐Khouri¹,

Dhade²

2014

IJEF

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We investigate the simultaneous links between oil price changes, national savings, legal and institutional development, and economic growth in the Gulf Cooperation Council (GCC) countries. Our study includes six GCC countries namely, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. We base our analysis on annual data that covers the period from 1980 to 2011. We implement different methodologies on time series cross sectional data: First, we test our model using fixed effect and random effect model techniques; Second, we employ Arellano-Bond/Blundell-Bond estimator to reduce the endogeneity problem that is common in this kind of studies. Results reveal a nonlinear and concave relationship between saving rates and economic growth. This result suggests that, at low level of economic growth, the increase in savings leads to high economic growth. However, as the countries' revenues and surpluses increase significantly (at higher levels in revenues and savings), high level of savings lead to lower growth in the economy. This might due to the lack of absorption capacity of the GCC markets. In addition, controlling for different factors, oil price changes explain the variability in the economic growth of the GCC countries. Economic globalization affects growth negatively, while institutional quality plays no role in economic growth of the GCC markets.

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“…In the second equation we use basically the same set of regressors with one difference: the PCY is replaced by GR (growth rate of real GDP). Some of the past literature have produced evidence of a positive effect of income growth on the saving rate implicitly suggesting a decline in the share of consumption in gdp in response to a higher rate of economic growth (Carol and Weil,1993;Singh, 2009). FD1 and FD2 are used as regressors in both specifications of our regression model of consumption.…”

Section: Independent Variables (A) Fd1 (Sum Of Money and Quasi-monementioning

confidence: 99%

The Response of Consumption to Alternative Measures of Financial Development and Real Interest Rate in a Sample of Central and East European Countries

Çiftçioğlu¹,

Almasifard²

2015

JEDS

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The paper focuses on investigating the relationship between (gdp share of) consumption and, two alternative measures of financial development and real interest rate using a sample of eight Central and East European countries for the period of 1993-2010. The panel estimation of two alternative regression equations for consumption suggested that the direction of the net effect of financial development on consumption can vary depending on the measure of financial development chosen. Specifically we found out that while the ratio of broad measure supply of money supply (M2) to gdp has a negative (and statistically significant) effect on consumption, the effect of the ratio of domestic credit to gdp is positive but statistically insignificant. Furthermore, the estimation results have produced evidence of a positive (and statistically significant) effect of real interest rate on consumption. And finally the per capita real gdp and growth rate of real gdp have been found to be (statistically) insignificantly associated with consumption.

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Does domestic saving cause economic growth? A time-series evidence from India

Cited by 59 publications

References 56 publications

The Estimation of the Cointegration Relationship between Growth, Domestic Investment and Exports: The Indian Economy

The Estimation of the Cointegration Relationship between Growth, Domestic Investment and Exports: The Indian Economy

The Role of Savings in Reducing the Effect of Oil Price Volatility for Sustainable Economic Growth in Oil Based Economies: The Case of GCC Countries

The Response of Consumption to Alternative Measures of Financial Development and Real Interest Rate in a Sample of Central and East European Countries

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