Savings and growth are often strongly correlated. Thus, it is important to study the determinants of savings and the direction of causality between savings and growth as these have important implications for development policy. Yet, careful empirical studies on savings behavior are missing for...

This study investigates the determinants of savings behavior in India and the direction of causality between savings and income per capita as these have important implications for development policy. We estimate long-run savings functions for India using modern co-integration procedures. Our...