Munich Personal RePEc Archive

Saving and economic growth in India

Sinha, Dipendra (1996): Saving and economic growth in India. Published in: Economia Internazionale , Vol. 49, No. 4 (1996): pp. 637-647.

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Abstract

This paper studies the relationship between GDP and saving in India. During the last few years, the saving rate has fallen marginally raising concern that it might adversely affect economic growth. We take a long run view. We explore whether there is a long run relationship between GDP and saving. In doing so, we distinguish between gross domestic saving and gross domestic private saving. We posit that gross domestic private saving rather than gross domestic saving is more important in determining GDP. We find that both gross domestic saving and gross domestic private saving are cointegrated with GDP. However, causality tests between the growth of gross domestic saving/the growth of private domestic saving and the growth of GDP indicate that the causality does not run in any direction.

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