Savings and Economic Growth in India: The Long-Run Nexus
AbstractIn this paper, the causal nexus between savings and economic growth in India is investigated within the framework of causality, co-integration and error correction in the presence of a structural break, using annual data from 1950-1951 to 1998-1999. Identifying the structural breaks in both savings and economic growth in different time period, this study finds support for the long-run equilibrium between savings and economic growth. Further, the study reveals that there is a unidirectional causality from economic growth to savings, thereby repudiating the classical view that savings has been the engine of economic growth.
Download InfoIf 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.
Bibliographic InfoPaper provided by Institute for Social and Economic Change, Bangalore in its series Working Papers with number 77.
Length: 18 pages
Date of creation: 2000
Date of revision:
Savings; Economic Growth;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (B B Chand).
If references are entirely missing, you can add them using this form.