The Role of Saving In Pakistans Economic Growth

Abstract

We study the relationship between saving and economic growth using time series data for Pakistan for 1960-95. We find that both total saving and private saving have a long run positive relationship with GDP. The augmented Granger causality indicate that the growth of GDP Granger causes the growth rates of both private saving and total saving. However, the growth rate of private saving is found not to be Granger causing growth of GDP while the growth of total saving is found to be causing the growth of GDP.