Theoretical and Applied Economics
No. 7 / 2010 (548)
Old Wine in New Bottles: Saving – Growth Nexus: Innovative Accounting Technique in Pakistan
COMSATS Institute of Information Technology
Rana Ejaz Ali KHAN
The Islamia University of Bahawalpur, Pakistan
Abstract. The paper re-investigates the relationship between economic growth and domestic savings by applying new approaches rather than old techniques. The cointegration and causality approaches have been applied for economic growth and domestic savings. In doing so, ARDL Bounds Testing, Johanson cointegration approaches are employed to examine for long run association while Innovative Accounting Techniques and Toda and Yamamoto (1995) for causal relationship has been applied. Ng-Perron de-trended test is used for order of integration of running actors. Results reveal that there exists a long run relationship between economic growth and domestic savings and their association is robust at least in long span of time. Causal results through innovative accounting technique assert that there is oneway causality running from economic growth to domestic savings while very weak from opposite side. Results by Toda and Yamamoto’s technique also confirm that economic growth leads domestic savings in Pakistan.
Contents
The Evolution of Early-Stage Entrepreneurial Activity Influencing Factors in Romania
Quantitative Methods for Evaluating the Informal Economy. Case Study at the Level of Romania
SMEs Financing: the Extent of Need and the Responses of Different Credit Structures
Input-Output Analysis and Demographic Accounting: A Tool for Educational Planning
Old Wine in New Bottles: Saving – Growth Nexus: Innovative Accounting Technique in Pakistan
Some Socio-Economic Effects of Labor Migration on Sending Countries. Evidence from Romania
Performance of Financial Control
Private Pensions in Romania. Management - Marketing - Effects and Expectations