Saving, Growth, and Investment: A Macroeconomic Analysis Using a Panel of Countries

Abstract
This paper provides a descriptive analysis of the long- and short-run correlations among saving, investment, and growth rates for 123 countries over the period 1961-94. Three results are robust across data sets and estimation methods: i) lagges saving rates are positively related to investment rates; ii) investment rates Granger cause growth rates with a negative sign; iii) growth rates Granger-cause investment with a positive sign. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology