The Egg or the Chick first; saving or GDP Growth: Case for Kenya

Waithima, Abraham

doi:10.4314/kjbm.v1i1.43817

Cited by 6 publications

(5 citation statements)

References 7 publications

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“…[31] Waithima (2008) used the Hendry Model with a two-step method to model a saving function for Kenya. He observed that a 1% increase in GDP growth rate causes a 0.5% increase in private saving.…”

Section: Household Saving Causes Economic Growthmentioning

confidence: 99%

Casual Relationship between Household Savings and Economic Growth in Bahrain

Elseoud¹

2016

JIFS

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This study aims to examine if neoclassical theory of growth is hold for Bahrain as an open economy employing Cointegration, Vector Error Correction and Granger Causality over the period of 1999-2014. Even though Cointegration test indicates the existence of a stable long-run equilibrium relationship between household saving and economic growth, Granger causality reveals that significant unidirectional causality runs from economic growth to household saving. This is contrary to the neoclassical theory of growth that causality runs from savings to economic growth. This is evidence that the theory does not hold in Bahrain during the period studied. Therefore, it might be suggested that household saving does not seem to play a major role in contributing to Bahrain's economic growth. This may be due to the fact that some other reasons bringing about savings unproductive.

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Section: Household Saving Causes Economic Growthmentioning

confidence: 99%

Casual Relationship between Household Savings and Economic Growth in Bahrain

Elseoud¹

2016

JIFS

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“…The sign of the coefficient of GDPG is positive which shows the long-run positive and insignificant relationship between GDPG and GDS. The studies by Waithima, 2008;Odhiambo, 2009;Oladipo, 2010 andMisztal, 2011 have found the positive impact of GDS on GDP growth.…”

Section: Long Run Resultsmentioning

confidence: 97%

Analyzing the Impact of Foreign Capital Inflows on Domestic Savings in Pakistan: A Comprehensive Time Series Investigation

Batool,

Sheikh,

Abbas

et al. 2023

JES

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This research delves into the ramifications of foreign capital inflows on domestic savings within the context of Pakistan. Utilizing annual time series data spanning from 1972 to 2022, this study employs the Auto Regressive Distributed Lag (ARDL) methodology alongside causality analysis. The findings underscore that factors such as labor force participation rate, gross fixed capital formation, deposit interest rate, foreign direct investment, trade, GDP growth, and foreign remittances exert a favorable influence on gross domestic savings over the long term. Conversely, variables encompassing age dependency, external debt stock, and net official development assistance exhibit a detrimental impact on gross domestic savings. Furthermore, the outcomes derived from the Granger causality test reveal the absence of causal relationships between foreign direct investment, remittances, trade, external debt, and gross domestic savings. Notably, unilateral causality is identified solely between net official development assistance and gross domestic savings.

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“…Dan secara umum dapat dilihat bahwa GDP dan FDI yang tinggi, juga akan mendorong tingkat tabungan yang tinggi juga di Indonesia. Kesimpulan ini didukung juga oleh penelitian yang dilakukan oleh Abu (2010) di Nigeria, Waithima (2008) dan Olajide (2009).…”

Section: Hasil Dan Pembahasanunclassified

“…Hasil penelitian menunjukkan bahwa, Indonesia lebih condong sepakat dengan teori yang disampaikan oleh Keynes bahwa di Indonesia tingkat tabungan dipengaruhi oleh GDP dan FDI. Hasil yang ditemukan dalam penelitian ini sejalan dengan temuan peneliti lain diantaranya adalah Abu (2010) di Nigeria, Waithima (2008) dan Olajide (2009).…”

Section: Penutup 51 Kesimpulanunclassified

Hubungan antara Tabungan dan Pertumbuhan Ekonomi di Indonesia

Prihadyatama

2024

Jurnal Maneksi

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The debate between two opposing theories of growth continues to this day. Loyalist opinion of the Solow Growth Theory which states that higher savings precede and cause higher economic growth. In the opposite camp, there is another growth theory that is no less powerful than that proposed by Keynes. Supporters of this theory have the view that growth in output (or income) causes growth in savings. Proponents of this theory argue that an increase in output will lead to an increase in income, thereby increasing the level of savings in the economy. This research aims to investigate the causality between savings and economic growth in Indonesia. The data used in this research is time series data from Saving, FDI (Foreign Direct Investment) and GDP (real Gross Domestic Product) in Indonesia from 1981 to 2020. All data was obtained by accessing the official website of the International Monetary Fund. The research method used is Toda Yamamoto causality testing. Indonesia tends to agree with the theory presented by Keynes that in Indonesia the savings rate is influenced by GDP and FDI.

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The Egg or the Chick first; saving or GDP Growth: Case for Kenya

Cited by 6 publications

References 7 publications

Casual Relationship between Household Savings and Economic Growth in Bahrain

Casual Relationship between Household Savings and Economic Growth in Bahrain

Analyzing the Impact of Foreign Capital Inflows on Domestic Savings in Pakistan: A Comprehensive Time Series Investigation

Hubungan antara Tabungan dan Pertumbuhan Ekonomi di Indonesia

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