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The savings-growth nexus for the Malaysian economy: a view through rolling sub-samples

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  • Chor Foon Tang
  • Soo Y. Chua

Abstract

The purpose of this study is to re-investigate the savings-growth nexus for the Malaysian economy using bounds testing approach to cointegration and Toda and Yamamoto (1995) and Dolado and Lütkepohl (1996) -- TYDL Granger causality test. This study covered the sample period from 1971:Q1 to 2008:Q4. The cointegration results suggest that the variables are moving together in the long run and the TYDL Granger causality results indicate that the relationship between savings and economic growth is bilateral. In addition, the rolling sub-samples TYDL Granger causality test exhibited a relatively stable causal relationship running from savings to economic growth in Malaysia particularly before the onset of Asian Financial Crisis in 1997/1998.

Suggested Citation

  • Chor Foon Tang & Soo Y. Chua, 2012. "The savings-growth nexus for the Malaysian economy: a view through rolling sub-samples," Applied Economics, Taylor & Francis Journals, vol. 44(32), pages 4173-4185, November.
  • Handle: RePEc:taf:applec:44:y:2012:i:32:p:4173-4185 DOI: 10.1080/00036846.2011.587784
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    Cited by:

    1. Tang, Chor Foon & Yip, Chee Yin & Ozturk, Ilhan, 2014. "The determinants of foreign direct investment in Malaysia: A case for electrical and electronic industry," Economic Modelling, Elsevier, vol. 43(C), pages 287-292.
    2. Tang, Chor Foon & Tan, Bee Wah, 2014. "A revalidation of the savings–growth nexus in Pakistan," Economic Modelling, Elsevier, vol. 36(C), pages 370-377.
    3. Tang, Chor Foon & Lai, Yew Wah & Ozturk, Ilhan, 2015. "How stable is the export-led growth hypothesis? Evidence from Asia's Four Little Dragons," Economic Modelling, Elsevier, vol. 44(C), pages 229-235.
    4. Yilmaz BAYAR, 2014. "Savings, Foreign Direct Investment Inflows and Economic Growth in Emerging Asian Economies," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(8), pages 1106-1122, August.
    5. Chor Foon Tang & Salah Abosedra, 2016. "Tourism and growth in Lebanon: new evidence from bootstrap simulation and rolling causality approaches," Empirical Economics, Springer, vol. 50(2), pages 679-696, March.
    6. Md. Samsul Alam & Sudharshan Reddy Paramati & Muhammad Shahbaz & Mita Bhattacharya, 2015. "Dynamics of Natural Gas Consumption, Output and Trade: Empirical Evidence from the Emerging Economies," Monash Economics Working Papers 21-15, Monash University, Department of Economics.
    7. Shahbaz, Muhammad & Arouri, Mohamed & Teulon, Frédéric, 2014. "Short- and long-run relationships between natural gas consumption and economic growth: Evidence from Pakistan," Economic Modelling, Elsevier, vol. 41(C), pages 219-226.
    8. Md. Samsul Alam & Muhammad Shahbaz & Sudharshan Reddy Paramati, 2016. "The Role of Financial Development and Economic Misery on Life Expectancy: Evidence from Post Financial Reforms in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 481-497, September.
    9. Pao, Hsiao-Tien & Li, Yi-Ying & Hsin-Chia Fu,, 2014. "Clean energy, non-clean energy, and economic growth in the MIST countries," Energy Policy, Elsevier, vol. 67(C), pages 932-942.

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