- Title
- The relationship between savings and economic growth in Southern African customs union (sacu) countries
- Creator
- Tala, Lavisa
- Subject
- Economic development--Southern Africa
- Subject
- Customs unions
- Date Issued
- 2023-04
- Date
- 2023-04
- Type
- Doctoral's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/63111
- Identifier
- vital:73187
- Description
- This study empirically investigates the nature of the relationship between savings and economic growth in SACU member countries, namely: South Africa, Botswana, Lesotho, Namibia, and Eswatini, using panel data for the period 1990-2021. A high savings rate is believed to be instrumental in stimulating economic growth, making it vital is for policy makers to understand the nature of the relationship existing between savings and economic growth in order to design and implement appropriate policies. To ensure robustness of the empirical results, this study applied different panel data estimation procedures. Using Pooled OLS, Random Effect, Fully Modified OLS, Dynamic OLS and Mean Group, Pool Mean Group and Dynamic Fixed Effect, the study discovered that gross domestic savings have a positive impact on economic growth among SACU member countries. Based on the results, gross domestic savings emerged with different coefficients indicating sensitivity to the estimation technique although statistically significant. Furthermore, the study dealt with the issue of linearity in the savings-growth nexus, by estimating the threshold level. Estimated results reveal evidence that gross domestic savings above 16 percent threshold have a negative effect on economic growth, while below the threshold, level savings impact economic growth positively. The study recommends, among other things, that policy makers design and implement policies that promote financial inclusion to mobilise domestic savings so as to increase economic growth. The major goal of economic policy should be to encourage households to save and ensure that domestic savings are invested in productive projects and sectors of the economy.
- Description
- Thesis (PhD) -- Faculty of Faculty of Business and Economic Sciences, 2023
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (xii, 155 pages)
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
- Rights
- All Rights Reserved
- Rights
- Open Access
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | TALA. L.pdf | 1 MB | Adobe Acrobat PDF | View Details Download |