The article attempts to shed light on the appropriate interest rate policy in the process of economic development. To this end, we examine whether higher interest rates lead to higher investment (and growth) in four East Asian countries. We find that the investment rate went up with real...

The direction of causality between savings and growth remains unclear even though it is of critical importance for development policy. In this paper, Granger causality analysis is undertaken for seven Asian countries using the VECM (Engle and Granger) and VAR procedures. We find that in most...