South Asian Savings-Investment Link: A Comparative Reappraisal

Published Online: 19 June, 2023 || Published in Print: 30 June, 2023

Authors

  • Rabiul Karim Department of Economics, Jagannath University Author
  • Md. Thasinul Abedin* Department of Accounting, University of Chittagong, Bangladesh Author
  • Kanon Kumar Sen Department of Accounting, Jahangirnagar University Author

DOI:

https://doi.org/10.54728/JFMG-202209-00058

Keywords:

Causality, Cointegration, Investment, Savings, Unit Root

Abstract

Due to mixed and inconclusive results in the existing literature, we look for the reassessment of the savings-investment dynamics for Bangladesh, India, Pakistan, Sri Lanka, and Nepal based on a country-case analysis over the period of 1972-2020. Amongst the individual economies, a cointegrating relationship is identified only for Pakistan. The short-run and long-run savings coefficients are significantly positive. Short-run and long-run causalities from domestic savings (% of GDP) to domestic investment (% of GDP) are observed. An increase in domestic savings (% of GDP) will, expectedly, boost domestic investment (% of GDP) in the South Asian developing economies under study.

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Published

2023-06-19

Issue

Vol. 2 No. 1

Section

Articles

How to Cite

Rabiul Karim, Md. Thasinul Abedin*, & Kanon Kumar Sen. (2023). South Asian Savings-Investment Link: A Comparative Reappraisal: Published Online: 19 June, 2023 || Published in Print: 30 June, 2023. Journal of Financial Markets and Governance, 2(1), 127-134. https://doi.org/10.54728/JFMG-202209-00058