An Empirical Investigation of the Impact of FDI, Export and Gross Domestic Savings on the Economic Growth in Bangladesh

Miah, M. Mamun; Majumder, Shapan Chandra

doi:10.18488/journal.29.2020.72.255.267

Cited by 5 publications

(2 citation statements)

References 3 publications

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“…models. This finding is in line with the previous studies that found evidence of positive long run impact of domestic savings on economic growth (Gatsi & Appiah 2020;Joshi et al 2019;Miah & Majumder 2020;Ribaj & Mexhuani 2021). Also, the results show that investment as proxied by GFCF has negative long run impact on economic growth, while TRADE promotes economic growth in the long run.…”

Section: Analysis Of Panel Regression Resultssupporting

confidence: 92%

“…The third group of studies consists of those that found insignificant or mixed results regarding the effect of savings on growth (Joshi, Pradhan & Bist 2019;Miah & Majumder 2020;Patra et al 2017;Yadav, Goyani & Mishra 2018). Among this group of studies, Bolarinwa and Obembe (2017) focussed on six African countries and found that saving had negative impact on growth in Burkina Faso and Niger, but positive impact for Nigeria.…”

Section: Literature Reviewmentioning

confidence: 99%

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Savings and growth nexus in the context of Southern African Customs Union countries

Tala,

Anyikwa,

le Roux

2024

Journal of Economic and Financial Sciences

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Orientation: The primary goal of Southern African Customs Union (SACU) is to promote economic development through regional coordination. Consequently, SACU members have set economic growth targets through various medium- and long-term policies.Research purpose: The article investigates the savings-growth nexus among SACU countries.Motivation for the study: This study is motivated by low economic growth among SACU countries and the gap in the saving-growth literature. Specifically, previous studies assumed linear relationship, thereby ignoring the fact that savings may be related to economic growth in a nonlinear fashion.Research approach/design and method: The study utilised several panel estimation techniques with data over 1990–2021 for the SACU countries.Main findings: Firstly, there is a strong evidence of long run relationship between saving and economic growth in SACU countries. Secondly, domestic saving exhibits a positive and statistically significant effect on economic growth both in the short-and long-term. Thirdly, there is evidence of non-linear relationship between domestic saving and economic growth. Lastly, it is shown that 16% threshold level of domestic savings to gross domestic product (GDP) ratio is consistent with 6% GDP growth target aspired by SACU union.Practical/managerial implications: The findings of this article suggest that domestic saving is a prerequisite for economic growth provided the funds are channelled to productive investments. Consequently, there is a need to design appropriate policies that can help to promote and mobilise savings.Contribution/value-add: This article contributes to the ongoing debate on saving-growth in the context of developing countries. In addition, it addressed the linearity assumption of the previous studies by incorporating nonlinear assumption.

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Section: Analysis Of Panel Regression Resultssupporting

confidence: 92%