Gross Domestic Savings and Gross Capital: What Matters to Their Formation in an Era of Economic Recession in Nigeria?

Abusomwan, Success Osamede; Ezebuihe, Jessy

doi:10.47535/1991ojbe026

Cited by 3 publications

(4 citation statements)

References 9 publications

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“…Consequently, during the observation period, the Indonesian government took numerous steps to restabilize the IS variables to finance its development programs. Prior studies by Yamori (1995), Tsoukis and Alyousha (2001), Tehranchian and Behravesh (2011), Jangili (2011), Mensah (2012), Jošić and Jošić (2012), Kumar, Webber, and Fargher (2012), Hundie (2014), Rahman and Hossain (2015), Al-Afeef and Al-Qudah (2015), Itoe and Atangana (2015), Abusomwan and Ezebuihe (2017), Aka (2017), Yadav, Goyari and Mishra (2018), Alrasheedy and Alaidarous (2018) empirically confirm the IS model by arguing that investment increases because of increased saving. However, several studies fail to uphold the IS model to argue that these two variables' positive correlation indicates that investment increases saving, not vice versa (Onafowara, Owoye, & Huart, 2011;Ngouhouo & Mouchili, 2014).…”

Section: Introductionmentioning

confidence: 88%

“…Indonesia's IS level from 1981 to 2018 could be considered controllable, although the gross saving level decreased in 1982 when the world oil price fell sharply. To cope with the declining oil price, the Indonesian government issued numerous policies such as reducing government expenditures, rescheduling and canceling several projects, devaluing IDR in April 1983, and reforming its tax, custom, and banking systems through the policy package on June 1,1983. The monetary crisis from 1997 to 1998 also changed the macroeconomic policies and, eventually, IS levels in Indonesia (World Bank, 2019a;2019d).…”

Section: Introductionmentioning

confidence: 99%

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Revisiting Keynes’ Investment and Saving Model in Indonesia

2020

Economic rev.

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This study aims to analyze the Keynes’ investment and saving model in Indonesia from 1981 to 2018. The researchers use the econometric test from the Granger causality test to find the short-run causal relationship and the Vector Error Correction Model to reveal both the short-run and long-run effects in the model. The result of Granger causality test demonstrates that there is no short-run causal relationship between these two variables. In the short-run, the increase in saving affects the consumption loans more compared to the investment loans. Besides, increased consumption compared to saving has more influence in raising investment. However, the Vector Error Correction Model proves that saving negatively affects investment in the long-run. This model empirically supports the long-run Keynes’ investment and saving model. Consequently, the Indonesian government needs to consider saving as a policy instrument to increase investment in the longrun.

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Section: Introductionmentioning

confidence: 88%

Section: Introductionmentioning

confidence: 99%

Revisiting Keynes’ Investment and Saving Model in Indonesia

2020

Economic rev.

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“…High levels of gross savings contribute to capital formation, enabling investments in infrastructure, education, and innovation. This, in turn, supports long-term economic growth and development (Abusomwan & Ezebuihe, 2017;. Additionally, gross savings act as a buffer during economic downturns, providing resources for individuals and institutions to weather financial challenges.…”

Section: Introductionmentioning

confidence: 93%

Economic Empowerment: The Role of Digital Financial Inclusion in Boosting Gross National Income in Upper-Income Countries

Khan,

Ahmad,

Abbas

et al. 2024

REAL

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The objective of this study is to examine the impact of the digital financial inclusion index on Gross National Income per Capita in upper-income countries. Using the Principal Components Analysis (PCA) method, the study has constructed a digital financial inclusion index with the data collected from the World Development Indicator for the years 2011–2021. Further, utilizing the Generalized Moments of Method (GMM) technique, the findings reveal a significant positive effect of the digital financial inclusion index on income levels, emphasizing the importance of inclusive financial systems for broader economic participation. Additionally, bank branches remain important, highlighting their complementary role alongside digital services. Moreover, savings significantly contribute to economic growth and stability. Lastly, ATMs play a positively significant role in raising economic development and increasing income levels. Policymakers should prioritise initiatives that enhance digital financial inclusion, strengthen traditional banking infrastructure, and encourage savings. Additionally, investments in accessible banking services, such as ATMs, can significantly contribute to advancing economic development and increasing income levels.

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“…Kedungwaru, Kabupaten Tulungagung, Jawa Timur 66221, Indonesia] Email: agusekosujianto@gmail.com 2 Faculty of Islamic Studies, Universitas Ahmad Dahlan Yogyakarta, Indonesia. Email: pribawa.pantas@pbs.uad.ac.id have been described as very important in enhancing the level of growth, especially in developing economies (Abusomwan & Ezebuihe, 2017). Private investment funds play an essential part in financing improvement and maintaining development.…”

Section: *Acknowledgementsmentioning

confidence: 99%

Do Real Interest Rate, Gross Domestic Savings and Net Exports Matter in Economic Growth? Evidence from Indonesia

Sujianto¹,

Pantas²,

Mashudi³

et al. 2020

JAFEB

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This study aims to measure the effects of real interest rate (RIR), gross domestic savings (GDS), and net exports (EN) shocks on Indonesia's economic growth (EG). The focus on Indonesia is unique due to the abundant resources available in the nation, but they are unsuccessful in boosting economic growth. This study applied a quantitative method to comprehensively analyze the correlation between variables by employing Vector Autoregression Model (VAR) combined with Vector Error Correction Model (VECM). Various procedures are preformed: Augmented Dickey-Fuller test (ADF), Optimum Lag Test, Johansen Cointegration Test, Granger Causality Test, as well as Impulse Response Function (IRF) and Error Variance Decomposition Analysis (FEVD). The data were collected from the World Bank and the Asian Development Bank from 1986 to 2017. The findings of the study indicated that economic growth responded positively to real interest rate shocks, which implies that when the real interest rate experiences a shock (increase), the economy will be inclined to growth. While, economic growth responded negatively to gross domestic savings and net export shocks. Policymakers are expected to consider several matters, particularly the economic conditions at the time of formulating policy, so that the prediction effectiveness of a policy can be appropriately assessed.

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Gross Domestic Savings and Gross Capital: What Matters to Their Formation in an Era of Economic Recession in Nigeria?

Cited by 3 publications

References 9 publications

Revisiting Keynes’ Investment and Saving Model in Indonesia

Revisiting Keynes’ Investment and Saving Model in Indonesia

Economic Empowerment: The Role of Digital Financial Inclusion in Boosting Gross National Income in Upper-Income Countries

Do Real Interest Rate, Gross Domestic Savings and Net Exports Matter in Economic Growth? Evidence from Indonesia

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