Recherchers economiques manageriales
Volume 14, Numéro 5, Pages 353-370
2020-12-31

Impact Of Savings On Economic Growth: Approach By Ardl And Toda-yamamoto – Case Of Saudi Arabia-

Authors : Mayache Nesrine .

Abstract

The main purpose is to investigate the long-run equilibrium relationship between savings and economic growth for Saudi Arabia from 1971 to 2018 by using the ARDL co-integration approach of Pesaran & Shin (2001) as well as Toda-Yamamoto test (1995) of no causality. The findings of ARDL bound test show that there is co-integration between variables and a significant positive impact of savings on economic growth in short and long run. Additionally, the Toda-Yamamoto test found out bi-directional causal relationship.

Keywords

Economic Growth; Savings; Autoregressive Distributed Lag Model; Toda-Yamamoto Test.