Savings, taxation and growth: the case of European Union countries

Mohsen Bahmani-Oskooee, Lorenzo Escot, Miguel-Angel Galindo and Farhang Niroomand

Global Business and Economics Review, 1999, vol. 1, issue 2, 203-214

Abstract: This paper examines the effects of saving and public capital on economic growth, developing a growth model and empirically investigates the role of these two variables for the European Union countries. The results show a non-homogenous situation in these countries. Using the Ordinary Least Square method, estimation results show that in the case of France, Germany, Greece, Spain, Sweeden and the United Kingdom, the saving variable has an unexpected sign and is only significant in the case of the United Kingdom. Regarding public capital results, only five countries France, Germany, Luxemburg, Netherlands and Spain, show a positive relationship.

Keywords: savings; taxation; economic growth; European Union; public capital; growth modelling. (search for similar items in EconPapers)
Date: 1999
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