South Asian Savings-Investment Link: A Comparative Reappraisal
Published Online: 19 June, 2023 || Published in Print: 30 June, 2023
DOI:
https://doi.org/10.54728/JFMG-202209-00058Keywords:
Causality, Cointegration, Investment, Savings, Unit RootAbstract
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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2023-06-19
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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