Since 2014
Analyzing the Savings-Investment Trend in a Panel of G-7 Countries
Asian Journal of Economics and Empirical Research
View Archive Info| Field | Value | |
| Title |
Analyzing the Savings-Investment Trend in a Panel of G-7 Countries
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| Creator |
Mansoor, Abdul
Sultana, Baserat Saeed, Romana |
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| Subject |
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Savings, Investment, Panel co-integration, Panel VAR, G-7 countries. — |
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| Description |
This study examined the relationship between savings and investment in the G-7 countries for the period of 1970 to 2015. The stationary analysis of the data has been done by adopting the panel Levin, Lin & Chu, Breitung, Pesaran & Shin, ADF-Fisher & PP-Fisher criteria while the long run relationship has been tested by employing the Pedroni residual test of co-integration. The results neglected the existence of a long run correlation between saving and investment in G-7 countries. Further, joint causality between the savings and investment has also been tested using the fixed effect VAR model. Wald test explains that the two consecutive lags i.e. S (-1) and S (-2) of savings is jointly causing savings in the current year in the G7 countries. While the same two lags of investment i.e. I (-1) and I (-2) does not jointly granger cause savings in the G7 economies. The results are in line with Feldstein and Horioka (1980) that there is a stable and significant association between the increasing rates of savings and investment in the short run while this relationship weaken in the long run.
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| Publisher |
Asian Online Journal Publishing Group
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| Contributor |
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| Date |
2018-09-10
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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| Format |
application/pdf
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| Identifier |
http://www.asianonlinejournals.com/index.php/AJEER/article/view/1482
10.20448/journal.501.2018.52.147.154 |
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| Source |
Asian Journal of Economics and Empirical Research; Vol 5, No 2 (2018); 147-154
2409-2622 2518-010X |
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| Language |
eng
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| Relation |
http://www.asianonlinejournals.com/index.php/AJEER/article/view/1482/pdf
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| Coverage |
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| Rights |
Copyright (c) 2018 Abdul Mansoor, Baserat Sultana, Romana Saeed
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