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Does causality technique matter to savings-growth nexus in Malaysia?

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  • Tang, Chor Foon

Abstract

The intention of this study was to investigate whether the causal inference between savings and economic growth in Malaysia is sensitive to the particular causality tests employed to ascertain the causal relationship. This study covered quarterly data from 1991:Q1 to 2006:Q3. The results suggested that the causal relationship between savings and economic growth in Malaysia is not sensitive to the particular causality test used. Thus, causality test plays no role in explaining the inconsistency causality result of savings and economic growth. Ultimately, causality test does not matter to savings-growth nexus for Malaysia.

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File URL: http://mpra.ub.uni-muenchen.de/38535/1/MPRA_paper_38535.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38535.

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Date of creation: 2009
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Publication status: Published in Malaysian Management Journal 1-2.13(2009): pp. 1-10
Handle: RePEc:pra:mprapa:38535
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Keywords: Causality; parametric; nonparametric; savings; growth;

Find related papers by JEL classification:

  • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
  • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
  • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
  • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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Cited by:

  1. 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.
  2. Tang, Chor Foon, 2010. "Savings-led growth theories: A time series analysis for Malaysia using the bootstrapping and time-varying causality techniques," MPRA Paper 27299, University Library of Munich, Germany.
  3. 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.

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