Relationships among household saving, public saving, corporate saving and economic growth in India

Dipendra Sinha*, Tapen Sinha

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

8 Citations (Scopus)

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. Such evidence is consistent with models of habit formation.

Original languageEnglish
Pages (from-to)181-186
Number of pages6
JournalJournal of International Development
Volume20
Issue number2
DOIs
Publication statusPublished - Mar 2008

Keywords

  • India
  • KPSS unit root tests
  • Multivariate Granger causality
  • Saving and growth

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