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Savings and investment in developing countries: Granger causality test

Philippine Review of Economics

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Field Value
 
Title Savings and investment in developing countries: Granger causality test
 
Creator Afzal, Mohammad; Gomal University, D.I. Khan
 
Subject savings; investment; capital mobility; causality
 
Description Additional evidence on savings and investment relationship in developing countries has been provided using conventional and time-series econometrics techniques. This paper finds no long-run relationship between savings and investment in seven countries of the sample, which implies increased degree of capital mobility and weakening of savings and investment relationship since early 1970s. There is bidirectional causality between savings and investment in South Africa, while there is unidirectional causality from savings to investment in Pakistan and Sri Lanka. There is no causality in India, Philippines, Malaysia, and Iran. This divergence might be due to country-specific policies and economic conditions. Strong correlation between savings and investment does not rule out capital mobility across countries. JEL classification: C23, F31, F21, F30
 
Publisher Philippine Review of Economics
 
Contributor —
 
Date 2010-10-05
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://www.econ.upd.edu.ph/pre/index.php/pre/article/view/230
 
Source Philippine Review of Economics; Vol 44, No 2 (2007)
1655-1516
 
Language eng
 
Relation http://www.econ.upd.edu.ph/pre/index.php/pre/article/view/230/627
 
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