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Effects of productivity growth on domestic savings across countries: Disentangling the roles of trend and cycle

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  • Abhishek Kumar
  • Sushanta Mallick
  • Kunal Sen

Abstract

Resource mobilization continues to be an important policy challenge for developing economies, raising questions as to what determines differences in saving behaviour across countries. Using a panel of 47 economies with at least 40 years of continuous time series data, we causally identify, using a range of approaches, that higher productivity growth leads to greater savings, thereby contributing to higher investment.

Suggested Citation

  • Abhishek Kumar & Sushanta Mallick & Kunal Sen, 2020. "Effects of productivity growth on domestic savings across countries: Disentangling the roles of trend and cycle," WIDER Working Paper Series wp-2020-155, World Institute for Development Economic Research (UNU-WIDER).
  • Handle: RePEc:unu:wpaper:wp-2020-155
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2020-155.pdf
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    References listed on IDEAS

    as
    1. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
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    Keywords

    Saving; Productivity; Growth; trends; shocks;
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