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Causal Links among Saving, Investment and Growth and Determinants of Saving in Sub-Saharan Africa: Evidence from Ethiopia

Ethiopian Journal of Economics

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Title Causal Links among Saving, Investment and Growth and Determinants of Saving in Sub-Saharan Africa: Evidence from Ethiopia
 
Creator Gebeyehu, W
 
Description The relationship between saving, investment and GDP still remains an empirical issue. In their aspiration to catch up the rest of the world, developing countries provides a special place on this matter. This paper tried to investigate the main determinants of saving and the connection among saving, investment and GDP in the case of Ethiopia using a combination oftime series models. The paper finds export, inflation and lag government expenditure to have a statistically significant short and long term impact on the saving rate. Growth of income has a positive effect on rate of saving andthe impulse response function shows the relevance of the neoclassical growth model in explaining the relationship between the saving rate and growth of income albeit lack of statistically significant causality between saving and investment in either direction. Although they may not be conclusive, the results suggest a more conducive policy environment and measures to boost domestic saving so as to induce growth from inside.
 
Publisher Ethiopian Economic Association (EEA), 1997
 
Contributor —
 
Date 2012-01-12
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.ajol.info/index.php/eje/article/view/73017
10.4314/eje.v19i2.
 
Source Ethiopian Journal of Economics; Vol 19, No 2 (2010); 1-34
1993-3681
 
Language eng
 
Relation http://www.ajol.info/index.php/eje/article/view/73017/61925
 
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