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This paper attempts to analyze the long run association between savings and growth; and investigates the causality … between savings and real economic activity. The empirical evidence of the study suggests that savings boost the real activity … to generate higher savings and reinforce the acceleration of income and growth. …
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The temporal interdependence between saving and output has been in focus in a number of recent empirical studies. Results from these studies have compelled some authors to question the traditional notion of a causal chain where saving leads growth through capital accumulation. This paper...
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