Relationships among Household Saving, Public Saving, Corporate Saving and Economic Growth in India

Sinha, Dipendra and Sinha, Tapen (2007): Relationships among Household Saving, Public Saving, Corporate Saving and Economic Growth in India.

Abstract

This paper examines the relationship between the growth rates of household saving, public saving, corporate saving and economic growth in India using multivariate Granger causality tests. The conventional wisdom suggests that the causality flows from saving to economic growth. We show that the causality goes in the opposite direction for India. Hence, higher saving is the consequence of higher economic growth and not a cause.

• Item Type: MPRA Paper
• Institution: Ritsumeikan Asia Pacific University, Japan and Macquarie University, Australia and ITAM, Mexico
• Language: English
• Keywords: Economic growth; public saving; corporate saving; household saving
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E21 - Consumption ; Saving ; Wealth; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance

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