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

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 23, 2024, https://igi.indrastra.com/items/show/433

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