Advanced Search
MyIDEAS: Login to save this article or follow this journal

Savings and Investment in India, 1970-2002: A Cointegration Approach

Contents:

Author Info

  • Seshaiah, S.V.
  • Vuyuri, S.

Abstract

The purpose of this paper is to investigate the relationship between savings and investment. The results reveal that there is unidirectional causality from savings to investment. From variance decomposition method, we observe that with a lag of three periods, change in savings effects 85% of variance in investment (and 92%) by the end of ten periods. On the other hand, no significant part of variance of yield curve is caused by inflation (3% and 4% at the end of three periods and ten periods, respectively). The results also showed cointegration between savings, investment and yield spread. Yield spread and investment have not been found to Granger-cause savings indicating savings are independent of investment and yield spread.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.usc.es/economet/reviews/aeid512.pdf
Download Restriction: No

Bibliographic Info

Article provided by Euro-American Association of Economic Development in its journal Applied Econometrics and International Development.

Volume (Year): 5 (2005)
Issue (Month): 1 ()
Pages:

as in new window
Handle: RePEc:eaa:aeinde:v:1:y:2005:i:1_2

Contact details of provider:
Web page: http://www.usc.es/economet/eaa.htm

Order Information:
Email:
Web: http://www.usc.es/economet/info.htm

Related research

Keywords: capital mobility; yield curve; savings;

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. AKA, Bédia F, 2007. "Relative Effects Of Public And Private Investment On Cote D’Ivoire’S Economic Performance," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(1).
  2. Verma, R. & Wilson, E.J., 2005. "A Multivariate Analysis of Savings, Investment, and Growth in India," Economics Working Papers wp05-24, School of Economics, University of Wollongong, NSW, Australia.
  3. Verma, R. & Wilson, E.J., 2005. "Savings, Investment, Foreign Inflows and Economic Growth of the Indian Economy 1950-2001," Economics Working Papers wp05-23, School of Economics, University of Wollongong, NSW, Australia.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eaa:aeinde:v:1:y:2005:i:1_2. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (M. Carmen Guisan).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.