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Role of Domestic Savings and Investment in Economic Growth for Developing Economies of East Africa

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  • Amery S Mureka

    (Department of Economics, Finance and Accounting; Kibabii University, Kenya)

Abstract

The objective of this research was to find out the role of gross domestic savings and investments on the economic growth of EAC region. The study used the explanatory research design. Annual panel data obtained from World Bank development database for Kenya, Uganda, Tanzania, Rwanda and Burundi from 2005 to 2021 were used. Levin, Lin and Chu (2002) methodology was used to test for stationarity and stabilize data. Pooled OLS regression model was used to estimate the parameters and conduct the inference. The results showed that Gross domestic investment was significant with a p-value of 0.012 at 0.05 significance level while domestic savings had insignificant effect on the GDP with a p-value of 0.069 at 0.05 level of significance. The resesearch concluded that Gross domestic investment has a significant role on economic growth while domestic savings is insignificant in determining growth for the EAC region.

Suggested Citation

  • Amery S Mureka, 2022. "Role of Domestic Savings and Investment in Economic Growth for Developing Economies of East Africa," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(9), pages 207-211, September.
    • Handle: RePEc:bcp:journl:v:6:y:2022:i:9:p:207-211
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