Are Investment and Savings Cointegrated? Evidence from Middle East and North African Countries
Helmi Hamdi () and
Rashid Sbia ()
The International Journal of Business and Finance Research, 2013, vol. 7, issue 4, 103-113
The aim of this paper is to empirically examine the relationship between saving and investment for 6 Middle East and North African Countries for the period 1980-2008. To this end, we use panel cointegration analysis and Error Correction 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. However, the short run estimation shows no causality between the two variables for the entire sample. At the individual level, saving Granger cause investment for Bahrain and Saudi Arabia only.
Keywords: Investment; Saving; Cointegration; Causality (search for similar items in EconPapers)
JEL-codes: C32 E21 E22 (search for similar items in EconPapers)
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Working Paper: Are Investment and Saving Cointegrated Evidence From Middle East and North African Countries (2013)
Working Paper: Are Investment and Saving Cointegrated? Evidence from Middle East and North African Countries (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ibf:ijbfre:v:7:y:2013:i:4:p:103-113
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