Savings and Investment in India, 1970-2002: A Cointegration Approach
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.
Volume (Year): 5 (2005)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.usc.es/economet/eaa.htm|
|Order Information:|| Web: http://www.usc.es/economet/info.htm Email: |
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 references are entirely missing, you can add them using this form.