JMGT_V9_N4_RP2
On the Causality Relationship of Economic Growth and Domestic Savings in the Asean Economies:A Co-Integration Analysis
Yagoub Elryah
Nai Qian Qian
Journal on Management
2230 – 715X
9
4
26
35
GDP (Gross Domestic Product), Granger Causality, Unit Root ADF (Augmented Dickey-Fuller Test), Savings, the ASEAN
This article proposes to estimate the causality relationship between economic growth and domestic savings. A cointegration and Granger Causality methods are employed with panel data from the Association of South East Asian Nations (ASEAN); the authors excluded Myanmar from the sample due to unavailability of data. To this end, they extracted time series annual data from the World Bank and Asian Development Bank for the period of 1980 to 2014. The results demonstrate the significant differences of relationship between economic growth and savings among the countries. The study finds that the domestic savings cause the economic growth of Singapore, The Philippines, Brunei and Vietnam. Meanwhile, the economic growth causes the domestic savings of Indonesia, Malaysia and Thailand. A bidirectional causality relationship is showed for Cambodia and Lao PDR.
March - May 2015
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