IDEAS home Printed from https://ideas.repec.org/a/icf/icfjfe/v07y2009i3&4p83-94.html
   My bibliography  Save this article

The Savings-Growth Nexus in Malaysia: Evidence from Nonparametric Analysis

Author

Listed:
  • Chor Foon Tang
  • Soo Y Chua

Abstract

This study re-examines the savings-growth nexus in Malaysia by using the nonparametric methodology. Using quarterly data from March 1991 to September 2006, the result of the Bierens (1997) nonparametric cointegration test shows that savings and economic growth are cointegrated. Moreover, the multiple rank F-test (Holmes and Hutton, 1990) indicates a bilateral causality between savings and economic growth. In this study, Dynamic OLS is adopted and the estimated result implies that savings and economic growth are positively related in the long run. This result highlights that policies which encourage savings should be implemented as the causality test shows that savings is an engine to economic growth through its impact on capital formation. Thus, high savings carry the meaning of ‘boosting economy’, rather than ‘freezing economy’.

Suggested Citation

  • Chor Foon Tang & Soo Y Chua, 2009. "The Savings-Growth Nexus in Malaysia: Evidence from Nonparametric Analysis," The IUP Journal of Financial Economics, IUP Publications, vol. 0(3 & 4), pages 83-94, September.
    • Handle: RePEc:icf:icfjfe:v:07:y:2009:i:3&4:p:83-94
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Segun Thompson Bolarinwa & Olufemi B. Obembe, 2017. "Empirical Analysis of the Nexus between Saving and Economic Growth in Selected African Countries (1981–2014)," Journal of Development Policy and Practice, , vol. 2(1), pages 110-129, January.
    2. Tang, Chor Foon & Tan, Bee Wah, 2014. "A revalidation of the savings–growth nexus in Pakistan," Economic Modelling, Elsevier, vol. 36(C), pages 370-377.
    3. Chor Foon Tang, 2015. "How Stable is the Savings-led Growth Hypothesis in Malaysia? The Bootstrap Simulation and Recursive Causality Tests," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 9(1), pages 1-17, February.
    4. Adeyemi Olayiwola Babasanya & Olukayode Emmanuel Maku & Joseph Nwabueze Amaefule, 2020. "Labour Force, National Savings and the Manufacturing Sector Productivity in Nigeria," Business & Management Compass, University of Economics Varna, issue 4, pages 459-473.
    5. Van Tuong Nguyen & Minh Duc Doan, 2020. "The Correlation between Financial Literacy and Personal Saving Behavior in Vietnam," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(6), pages 590-603, June.
    6. Mohamed Abdouli and Sami Hammami, 2017. "Exploring Links between FDI Inflows, Energy Consumption, and Economic Growth: Further Evidence from MENA Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(1), pages 95-117, March.
    7. Chor Foon Tang & Soo Y. Chua, 2012. "The savings-growth nexus for the Malaysian economy: a view through rolling sub-samples," Applied Economics, Taylor & Francis Journals, vol. 44(32), pages 4173-4185, November.
    8. Tang, Chor Foon, 2010. "Savings-led growth theories: A time series analysis for Malaysia using the bootstrapping and time-varying causality techniques," MPRA Paper 27299, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icf:icfjfe:v:07:y:2009:i:3&4:p:83-94. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: G R K Murty (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.