Saving and economic growth in India
AbstractThis paper studies the relationship between GDP and saving in India. During the last few years, the saving rate has fallen marginally raising concern that it might adversely affect economic growth. We take a long run view. We explore whether there is a long run relationship between GDP and saving. In doing so, we distinguish between gross domestic saving and gross domestic private saving. We posit that gross domestic private saving rather than gross domestic saving is more important in determining GDP. We find that both gross domestic saving and gross domestic private saving are cointegrated with GDP. However, causality tests between the growth of gross domestic saving/the growth of private domestic saving and the growth of GDP indicate that the causality does not run in any direction.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 18283.
Date of creation: 1996
Date of revision:
Publication status: Published in Economia Internazionale 4.49(1996): pp. 637-647
saving; economic growth; India;
Other versions of this item:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
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