Private Savings and its Influence on Economic Growth in India in the Post Reform Period
Dublin Core
Title
Private Savings and its Influence on Economic Growth in India in the Post Reform Period
Subject
Private saving
Household saving
Interest rates
Economic growth
Gross domestic product
Consumer price index
Description
Neo-Classical growth models show a clear relationship between savings and economic growth and consider savings a prerequisite for faster growth in an economy. Private savings in India have been a major contributor to total savings for several years. In this context, it is essential to investigate the long-run causality relationship between private savings and economic growth. It is also important, for their policy implications, to identify various determinants of private savings and analyse their impact in driving private savings. The study covers the period from 1991 to 2014 and uses the Engel-Granger cointegration test to find the direction of causality. To capture the degree of impact of various determinants on private savings ARDL model has been employed. The results show that growth in GDP and private savings in India are cointegrated and have a unilateral long-run relationship. It was found that changes in lending rates, causes a change in private savings. Other variables do not have a significant impact on private savings in India.
Creator
Khandelwal, Amika
K J, Joshy
Source
Artha Journal of Social Sciences; Vol. 16 No. 4 (2017): Artha Journal of Social Sciences; 79-95
0000-0000
0975-329X
Publisher
Centre for Publications, CHRIST (Deemed to be University), Bangalore
Date
2017-10-01
Rights
Copyright (c) 2019 Artha - Journal of Social Sciences
http://creativecommons.org/licenses/by-nc/4.0
Relation
Format
application/pdf
Language
eng
Type
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
Text
Identifier
Collection
Citation
Amika Khandelwal and K J, Joshy, Private Savings and its Influence on Economic Growth in India in the Post Reform Period, Centre for Publications, CHRIST (Deemed to be University), Bangalore, 2017, accessed November 7, 2024, https://igi.indrastra.com/items/show/433