Domestic savings and investment are positively correlated across countries and through time, as Feldstein-Horioka (FH … relationship is causal: an exogenous rise in savings increases investment. This result holds in the full sample of countries and … endogeneity bias. The core of our identification strategy relies on the idea that population age structure influences savings, but …

Horioka in 1980, economists have been studying the relationship between saving and investment with renewed vigor. Most of the … saving and investment. The other six countries may face macroeconomic instability in the long run because of the divergence … between saving rate and investment rate …

Economic theories speculate that savings generate investment which in turn creates employment opportunities that give … growth of a country. This paper attempts to investigate the causal relationship between domestic savings, domestic investment … bidirectional causality between domestic savings and domestic investment in the short-run. However, there is no short-run Granger …