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Savings, taxation and growth: the case of European Union countries

Author

Listed:
  • Mohsen Bahmani-Oskooee
  • Lorenzo Escot
  • Miguel-Angel Galindo
  • Farhang Niroomand

Abstract

This paper examines the effects of saving and public capital on economic growth, developing a growth model and empirically investigates the role of these two variables for the European Union countries. The results show a non-homogenous situation in these countries. Using the Ordinary Least Square method, estimation results show that in the case of France, Germany, Greece, Spain, Sweeden and the United Kingdom, the saving variable has an unexpected sign and is only significant in the case of the United Kingdom. Regarding public capital results, only five countries France, Germany, Luxemburg, Netherlands and Spain, show a positive relationship.

Suggested Citation

  • Mohsen Bahmani-Oskooee & Lorenzo Escot & Miguel-Angel Galindo & Farhang Niroomand, 1999. "Savings, taxation and growth: the case of European Union countries," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 1(2), pages 203-214.
    • Handle: RePEc:ids:gbusec:v:1:y:1999:i:2:p:203-214
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