This paper presents an empirical assessment of the determinants of private savings rate in Malaysia by focusing on the role of foreign savings and economic growth. The analysis, based on 40 years of observations, reveals that in the long-run per-capita income, dependency ratio, foreign savings (FDI), interest rate and taxes all have a significant effect on private savings rate. Causal inferences based on Toda and Yamamoto (1995) approach reveal that savings Granger cause economic growth and not vice-versa. In addition, we endorse the long-run causal relationship that runs from FDI to economic growth. We conclude that much of the recent slackness in short-run private savings is a consequence of the economic slow-down due to the Asian financial crisis and that, as the economic performance in Malaysia improves, both domestic and foreign savings are expected to increase.

(2007). Private savings, growth, dependency ratio and foreign capital: some issues and lessons from Malaysia [journal article - articolo]. In SAVINGS AND DEVELOPMENT. Retrieved from http://hdl.handle.net/10446/27395

Private savings, growth, dependency ratio and foreign capital: some issues and lessons from Malaysia

2007-01-01

Abstract

This paper presents an empirical assessment of the determinants of private savings rate in Malaysia by focusing on the role of foreign savings and economic growth. The analysis, based on 40 years of observations, reveals that in the long-run per-capita income, dependency ratio, foreign savings (FDI), interest rate and taxes all have a significant effect on private savings rate. Causal inferences based on Toda and Yamamoto (1995) approach reveal that savings Granger cause economic growth and not vice-versa. In addition, we endorse the long-run causal relationship that runs from FDI to economic growth. We conclude that much of the recent slackness in short-run private savings is a consequence of the economic slow-down due to the Asian financial crisis and that, as the economic performance in Malaysia improves, both domestic and foreign savings are expected to increase.
articolo
2007
Cet article présente une évaluation empirique des déterminants du taux d’épargne privée en Malaisie en se concentrant sur le rôle de l’épargne étrangère et la croissance économique. L’analyse, basée sur 40 ans d’observations, démontre que sur le long terme, le revenu individuel, le dependency ratio, les épargnes étrangères, le taux d’intérêt et la taxation ont tous des effets significatifs sur le taux d’épargne privée. En plus, il démontre que l’épargne dans le long-terme cause la croissance économique; de même, l’investissement étranger a le même effet. Par conséquent, il explique la relation de court-terme entre les épargnes plus faibles et la croissance économiques avec la crise financière Asiatique.
Thanoon, MARWAN ABDUL MALIK; Baharumshah, AHMAD ZUBAIDI
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/27395
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