Data and definitions: Underestimating savings and investment in an open economy

Ashima Goyal

Indira Gandhi Institute of Development Research, Mumbai Working Papers from Indira Gandhi Institute of Development Research, Mumbai, India

Abstract: This note clarifies definitions and derives from first principles the relationship between investment, domestic and foreign savings in order to show that there is underestimation of investment and foreign savings given conceptual macroeconomic definitions and Indian practice. Indian national accounts report and use gross domestic savings but the measure of capital inflows used with it is the one appropriate for gross national savings. The degree of underestimation is shown using recent data and implications drawn from the errors.

Keywords: gross domestic and national savings; capital formation; national accounts (search for similar items in EconPapers)
JEL-codes: E21 E22 F36 O47 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2007-10
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Citations: View citations in EconPapers (1)

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Working Paper: Data and Definitions: Underestimating Savings and Investment in an Open Economy (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ind:igiwpp:2007-015

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