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Savings-led growth theories: A time series analysis for Malaysia using the bootstrapping and time-varying causality techniques

  • Tang, Chor Foon

The purpose of this study is to empirically investigate the vindication of savings-led growth hypothesis for the Malaysian economy with the long run TYDL version of Granger causality – Toda and Yamamoto (1995) and Dolado and Lütkepohl (1996). This study used the quarterly sample from 1970:Q1 to 2008:Q4. The recursive regression procedure will also incorporate into the TYDL causality test to measure the stability of the savings-led growth hypothesis in the long run. Our empirical results support that the savings-led growth hypothesis is long run phenomenon and stable over time. Therefore, the Malaysian dataset supports the endogenous growth theory.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27299.

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Date of creation: 2010
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Handle: RePEc:pra:mprapa:27299
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