justified by the idea that government deficits reduce national savings, which ultimately reduces domestic investment and economic … growth. However, this idea that domestic savings must necessarily increase if investment increases cannot be taken for … prohibition as a means to revitalize investment. This study raises the question of domestic savings-investment causality in the …

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 …

The aim of this paper is to empirically examine the relationship between saving and investment for 6 Middle East and … Model. The long run estimation reveals causality between investment and saving for the entire sample. The Granger causality … tests confirm this result and validate the presence of bidirectional causal relationship between investment and saving …

Based on the relation between investment and domestic saving proposed by Feldstein and Horioka (1980) to verify capital … autoregressive (SVAR) involving investment and saving in order to evaluate the effect of exogenous shocks through impulse response … showed that investment is sensitive to contemporaneous innovation on saving and this effect lasts for a long time. Regarding …