Are Investment and Saving Cointegrated Evidence From Middle East and North African Countries

Rashid Sbia and Helmi Hamdi

MPRA Paper from University Library of Munich, Germany

Abstract: 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 techniques. 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; MENA (search for similar items in EconPapers)
JEL-codes: C32 C33 E21 E22 N15 N17 O55 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Are Investment and Savings 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:pra:mprapa:64151

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