The co-integration and causal relationship between saving and economic growth in India
The role of saving in promoting economic growth has received considerable attention all over the world. Saving is considered as real driving force behind the growth of an economy. The aim of this paper is to examine the casual relationship between economic growth and savings in India. To analyze thi...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2021-03-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1529.pdf
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| _version_ | 1819203852465864704 |
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| author | Dr. Tariq Ahmad BHAT Tariq Ahmad LONE Dr. Khursheed Hussain DAR |
| author_facet | Dr. Tariq Ahmad BHAT Tariq Ahmad LONE Dr. Khursheed Hussain DAR |
| author_sort | Dr. Tariq Ahmad BHAT |
| collection | DOAJ |
| description | The role of saving in promoting economic growth has received considerable attention
all over the world. Saving is considered as real driving force behind the growth of an economy.
The aim of this paper is to examine the casual relationship between economic growth and savings
in India. To analyze this relationship time series data from 1960 to 2019 was used. To check the
stationarity of data ADF and PP test were used. The Johansen co-integration test was employed to
check the relationship between the variables. Finally Granger causality test was applied to see
the direction of causality. The results have shown that all the variables are non stationary.
The Johnson method shows that both the variables share the relationship with one another. The
econometric evidence supports that savings do cause economic growth and economic growth in
turn to savings. The bi-directional casual relationship was observed, which suggests that in India
higher economic growth leads to higher savings and higher savings to more economic growth. |
| first_indexed | 2024-12-23T04:26:30Z |
| format | Article |
| id | doaj.art-67bb3310bb7e478aac2caae8a3edf1bc |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-12-23T04:26:30Z |
| publishDate | 2021-03-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-67bb3310bb7e478aac2caae8a3edf1bc2022-12-21T18:00:08ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292021-03-01XXVIII123924618418678The co-integration and causal relationship between saving and economic growth in IndiaDr. Tariq Ahmad BHAT0Tariq Ahmad LONE1Dr. Khursheed Hussain DAR2 Vikram University Ujjain, India Aligrah Muslim University Aligarh, U.P., India Central University of Kashmir, Ganderbal, Jammu and Kashmir The role of saving in promoting economic growth has received considerable attention all over the world. Saving is considered as real driving force behind the growth of an economy. The aim of this paper is to examine the casual relationship between economic growth and savings in India. To analyze this relationship time series data from 1960 to 2019 was used. To check the stationarity of data ADF and PP test were used. The Johansen co-integration test was employed to check the relationship between the variables. Finally Granger causality test was applied to see the direction of causality. The results have shown that all the variables are non stationary. The Johnson method shows that both the variables share the relationship with one another. The econometric evidence supports that savings do cause economic growth and economic growth in turn to savings. The bi-directional casual relationship was observed, which suggests that in India higher economic growth leads to higher savings and higher savings to more economic growth. http://store.ectap.ro/articole/1529.pdf gdpeconomic growthsavingcasual relationshipintegration |
| spellingShingle | Dr. Tariq Ahmad BHAT Tariq Ahmad LONE Dr. Khursheed Hussain DAR The co-integration and causal relationship between saving and economic growth in India Theoretical and Applied Economics gdp economic growth saving casual relationship integration |
| title | The co-integration and causal relationship between saving and economic growth in India |
| title_full | The co-integration and causal relationship between saving and economic growth in India |
| title_fullStr | The co-integration and causal relationship between saving and economic growth in India |
| title_full_unstemmed | The co-integration and causal relationship between saving and economic growth in India |
| title_short | The co-integration and causal relationship between saving and economic growth in India |
| title_sort | co integration and causal relationship between saving and economic growth in india |
| topic | gdp economic growth saving casual relationship integration |
| url |
http://store.ectap.ro/articole/1529.pdf
|
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