Authors : Abiodun S. Bankole and Basiru Oyeniran Fatai
Abstract: This study examined the relationship between domestic savings and economic growth in selected Sub-Saharan African countries during the period 1980-2010. The researchers employed the Granger causality and panel co-integration techniques to analyze the relationship between savings and economic growth. The Granger causality test revealed that causality runs from savings to economic growth in Sub-Saharan Africa. Thus, researchers accept the Solow’s hypothesis that savings precedes economic growth but reject the Keynesian theory that it is economic growth that leads to higher savings. The researchers recommended that governments and policy makers should employ policies that would accelerate domestic savings, so as to increase economic growth.
Abiodun S. Bankole and Basiru Oyeniran Fatai, 2014. Savings and Economic Growth in Sub-Saharan Africa: A Panel Co-Integration and Granger Causality Test. Journal of Economics Theory, 8: 1-4.