Budha, Birendra (2012): A multivariate analysis of savings, investment and growth in Nepal.

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Abstract
This paper examines the relationship between the gross domestic savings, investment and growth for Nepal using annual time series data for the period of 1974/75 to 2009/10. The study employs the Autoregressive Distributed Lag (ARDL) approach to test for cointegration and Error correction based Granger causality analysis for exploring the causality between the variables. Empirical results show that there exist cointegration between gross domestic savings, investment and gross domestic product when each of these is taken as dependent variable. Granger causality analysis shows that there exists shortrun bidirectional causality between investment and gross domestic product as well as between gross domestic savings and investment. Nevertheless, no shortrun causality is found between gross domestic savings and gross domestic product. Thus, the policy of accelerating growth by promoting investment works to some extant only since the longrun investment multiplier is below one.
Item Type:  MPRA Paper 

Original Title:  A multivariate analysis of savings, investment and growth in Nepal 
Language:  English 
Keywords:  gross domestic savings, gross fixed capital formation, gross domestic product 
Subjects:  E  Macroeconomics and Monetary Economics > E2  Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy 
Item ID:  43346 
Depositing User:  Mr. Birendra Budha 
Date Deposited:  20 Dec 2012 17:02 
Last Modified:  27 Sep 2019 04:42 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/43346 