Saving, Investment, and Current Account Surplus in Developing Asia
Donghyun Park () and
Kwanho Shin ()
No 158, ADB Economics Working Paper Series from Asian Development Bank
An integral part of global current account imbalances is the large and persistent current account surplus developing Asia has run since the 1997–1998 Asian crisis. A country’s current account surplus is, by definition, equal to its net saving. The central objective of this paper is to investigate the extent to which the saving and investment rate of Asian countries can be explained by the underlying fundamental determinants of saving and investment such as gross domestic product growth and demographic factors. Our empirical analysis yields two key findings. First, we find stronger evidence of oversaving than underinvestment in the region. Second, we find stronger evidence of overinvestment prior to the Asian crisis than underinvestment after the Asian crisis. This suggests that the key to rebalancing Asian growth toward domestic sources lies in promoting consumption rather than investment.
Keywords: Saving; investment; current account balance; global imbalance; Asia (search for similar items in EconPapers)
JEL-codes: E21 E22 F32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-mac, nep-opm and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11) Track citations by RSS feed
Downloads: (external link)
http://www.adb.org/Documents/Working-Papers/2009/Economics-WP158.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.adb.org/Documents/Working-Papers/2009/Economics-WP158.pdf [301 Moved Permanently]--> https://www.adb.org/Documents/Working-Papers/2009/Economics-WP158.pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0158
Access Statistics for this paper
More papers in ADB Economics Working Paper Series from Asian Development Bank Contact information at EDIRC.
Bibliographic data for series maintained by Maria Susan M. Torres ().