IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v6y2022i9p207-211.html
   My bibliography  Save this article

Role of Domestic Savings and Investment in Economic Growth for Developing Economies of East Africa

Author

Listed:
  • Amery S Mureka

    (Department of Economics, Finance and Accounting; Kibabii University, Kenya)

Abstract

The objective of this research was to find out the role of gross domestic savings and investments on the economic growth of EAC region. The study used the explanatory research design. Annual panel data obtained from World Bank development database for Kenya, Uganda, Tanzania, Rwanda and Burundi from 2005 to 2021 were used. Levin, Lin and Chu (2002) methodology was used to test for stationarity and stabilize data. Pooled OLS regression model was used to estimate the parameters and conduct the inference. The results showed that Gross domestic investment was significant with a p-value of 0.012 at 0.05 significance level while domestic savings had insignificant effect on the GDP with a p-value of 0.069 at 0.05 level of significance. The resesearch concluded that Gross domestic investment has a significant role on economic growth while domestic savings is insignificant in determining growth for the EAC region.

Suggested Citation

  • Amery S Mureka, 2022. "Role of Domestic Savings and Investment in Economic Growth for Developing Economies of East Africa," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(9), pages 207-211, September.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:9:p:207-211
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-6-issue-9/207-211.pdf
    Download Restriction: no
    File URL: https://www.rsisinternational.org/virtual-library/papers/role-of-domestic-savings-and-investment-in-economic-growth-for-developing-economies-of-east-africa/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Robert J. Barro, 2003. "Determinants of Economic Growth in a Panel of Countries," Annals of Economics and Finance, Society for AEF, vol. 4(2), pages 231-274, November.
    2. Johansen, Soren, 1991. "Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models," Econometrica, Econometric Society, vol. 59(6), pages 1551-1580, November.
    3. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    4. Hooi Hooi Lean & Yingzhe Song, 2009. "The domestic savings and economic growth relationship in China," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 2(1), pages 5-17, February.
    5. Artur Ribaj & Fitim Mexhuani, 2021. "The impact of savings on economic growth in a developing country (the case of Kosovo)," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-13, December.
    6. Hsiao, Cheng & Hashem Pesaran, M. & Kamil Tahmiscioglu, A., 2002. "Maximum likelihood estimation of fixed effects dynamic panel data models covering short time periods," Journal of Econometrics, Elsevier, vol. 109(1), pages 107-150, July.
    7. Hooi Hooi Lean & Yingzhe Song, 2009. "The domestic savings and economic growth relationship in China," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 2(1), pages 5-17, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ali, Amjad & Ur Rehman, Hafeez, 2015. "Macroeconomic Instability and Its Impact on Gross Domestic Product: An Empirical Analysis of Pakistan," MPRA Paper 71037, University Library of Munich, Germany.
    2. Yan Shen & Cheng Hsiao & Hiroshi Fujiki, 2005. "Aggregate vs. disaggregate data analysis-a paradox in the estimation of a money demand function of Japan under the low interest rate policy," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(5), pages 579-601.
    3. Yap, Wei Yim & Lam, Jasmine S.L., 2006. "Competition dynamics between container ports in East Asia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 40(1), pages 35-51, January.
    4. Ely, David & Salehizadeh, Mehdi, 2001. "American depositary receipts: An analysis of international stock price movements," International Review of Financial Analysis, Elsevier, vol. 10(4), pages 343-363.
    5. Erida Curraj, 2019. "Vintage Design Furniture in Albania, a New Retro Design Paradigm in the Post-Communist Era," European Journal of Engineering and Formal Sciences Articles, Revistia Research and Publishing, vol. 2, ejef_19.
    6. Grigori Fainstein & Igor Novikov, 2011. "The Comparative Analysis of Credit Risk Determinants In the Banking Sector of the Baltic States," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 20-45, June.
    7. Frank Asche, 2001. "Testing the effect of an anti-dumping duty: The US salmon market," Empirical Economics, Springer, vol. 26(2), pages 343-355.
    8. Wang, Peijie & Brand, Steven, 2015. "A new approach to estimating value–income ratios with income growth and time-varying yields," European Journal of Operational Research, Elsevier, vol. 242(1), pages 182-187.
    9. Boris Hofmann, 2003. "Bank Lending and Property Prices: Some International Evidence," Working Papers 222003, Hong Kong Institute for Monetary Research.
    10. Garg, Bhavesh & Prabheesh, K.P., 2021. "Testing the intertemporal sustainability of current account in the presence of endogenous structural breaks: Evidence from the top deficit countries," Economic Modelling, Elsevier, vol. 97(C), pages 365-379.
    11. Martin T. Bohl & Alexander Pütz & Pierre L. Siklos & Christoph Sulewski, 2018. "Information Transmission under Increasing Political Tension – Evidence for the Berlin Produce Exchange 1887-1896," CQE Working Papers 7618, Center for Quantitative Economics (CQE), University of Muenster.
    12. Arshad, Sumera & Ali, Amjad, 2016. "Trade-off between Inflation, Interest and Unemployment Rate of Pakistan: Revisited," MPRA Paper 78101, University Library of Munich, Germany.
    13. Solomon P. Nathaniel & Festus V. Bekun, 2020. "Electricity Consumption, Urbanization and Economic Growth in Nigeria: New Insights from Combined Cointegration amidst Structural Breaks," Research Africa Network Working Papers 20/013, Research Africa Network (RAN).
    14. Moustfa Ismael Khaleel & Ahmed Younis Jabbar & Maha Kalai & Rima Aloulou & Kamel Helali, 2024. "An Applied Study of the Symmetric and Asymmetric Impact of Oil Prices and International Financial Markets on Economic Growth in Iraq," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 66-80, July.
    15. Tarlok Singh, 2016. "On the sectoral linkages and pattern of economic growth in India," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(2), pages 257-275, April.
    16. Phylaktis, Kate & Chen, Long, 2009. "Price discovery in foreign exchange markets: A comparison of indicative and actual transaction prices," Journal of Empirical Finance, Elsevier, vol. 16(4), pages 640-654, September.
    17. repec:agr:journl:v:4(605):y:2015:i:4(605):p:133-144 is not listed on IDEAS
    18. J. Mark MUNOZ & Al NAQVI, 2017. "Artificial Intelligence and Urbanization: The Rise of the Elysium City," Journal of Economics and Political Economy, KSP Journals, vol. 4(1), pages 1-13, March.
    19. Mounir Dahmani & Mohamed Mabrouki & Ludovic Ragni, 2021. "Decoupling Analysis of Greenhouse Gas Emissions from Economic Growth: A Case Study of Tunisia," Energies, MDPI, vol. 14(22), pages 1-15, November.
    20. Biswajit Maitra, 2011. "Anticipated Money, Unanticipated Money and Output Variations in Singapore," Journal of Quantitative Economics, The Indian Econometric Society, vol. 9(1), pages 118-133.
    21. Hian Teck HOON & Frank S T Hsiao & Mei-Chu Wang Hsiao, 2020. "FDI, Exports, and GDP in East and Southeast Asia — Panel Data versus Time-Series Causality Analyses," World Scientific Book Chapters, in: Development Strategies of Open Economies Cases from Emerging East and Southeast Asia, chapter 4, pages 81-129, World Scientific Publishing Co. Pte. Ltd..

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:6:y:2022:i:9:p:207-211. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.