THE RELATIONSHIP BETWEEN SAVINGS AND ECONOMIC GROWTH AT THE DISAGGREGATED LEVEL

Lumengo Bonga-Bonga and Nomvuyo Guma
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Nomvuyo Guma: University of Johannesburg

Economia Internazionale / International Economics, 2017, vol. 70, issue 1, 1-24

Abstract: While the literature, both international and in South Africa, is relatively rich in studies on the determinants of foreign direct investment as well as the determinants of savings, none of the work done on South Africa has made use of disaggregated saving data to understand whether there is an observable difference in the marginal propensity to save of the different economic sectors. Thus, this paper attempts to assess the marginal propensity to save by the household, corporate and government sectors in South Africa. The results of the econometric analysis demonstrate that the greatest responsiveness of savings to GDP growth occurs amongst corporates. These findings should inform the South African government on how to regulate sectoral taxation that intends to encourage savings, given the low level of savings in the country. Il rapporto tra risparmio e crescita economica a livello disaggregato Sia la letteratura internazionale che quella relativa al Sud Africa sono relativamente ricche di studi sulle determinanti degli investimenti diretti esteri e del risparmio, ma nessuno degli studi sul Sud Africa ha utilizzato dati disaggregati sul risparmio per comprendere se c’è una differenza rilevante nella propensione marginale al risparmio dei diversi settori economici. Scopo di questo lavoro è valutare la propensione marginale al risparmio del settore privato, del settore corporate e del settore pubblico in Sud Africa. I risultati dell’analisi econometrica mostrano che la maggiore reattività del risparmio alla crescita del PIL si ha nel settore corporate. Queste evidenze dovrebbero suggerire al governo sudafricano come regolare la tassazione nei vari settori al fine di incentivare il risparmio, considerato il suo basso livello nel paese.

Keywords: Savings; Corporates; Households; Government; Cointegration (search for similar items in EconPapers)
JEL-codes: C10 E20 O40 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: The relationship between savings and economic growth at the disaggregated level (2016)
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