<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The causal link between savings and economic growth has been extensively discussed in the economic growth and development literature, but the question of the direction of this link has not yet been clearly defined. The aim of this paper is to determine the direction and intensity of savings causality (components of private savings) and economic growth in Bosnia and Herzegovina. Granger’s causality test, the Toda-Yamamoto procedure, was applied to test for causality between savings and economic growth. The results of Granger’s causality test indicated that there is no causal link between components of private savings with economic growth in Bosnia and Herzegovina. It was found that among the variables there is cointegration, but not causality, which means that the variables have a common stochastic trend. This fully corresponds to the characteristics of the Bosnia and Herzegovina’s economy.</p>
</abstract>

The causal link between savings and economic growth has been extensively discussed in the economic growth and development literature, but the question of the direction of this link has not yet been clearly defined. The aim of this paper is to determine the direction and intensity of savings causality (components of private savings) and economic growth in Bosnia and Herzegovina. Granger’s causality test, the Toda-Yamamoto procedure, was applied to test for causality between savings and economic growth. The results of Granger’s causality test indicated that there is no causal link between components of private savings with economic growth in Bosnia and Herzegovina. It was found that among the variables there is cointegration, but not causality, which means that the variables have a common stochastic trend. This fully corresponds to the characteristics of the Bosnia and Herzegovina’s economy.

The Causal Link Between Savings and Economic Growth in Bosnia and Herzegovina

PhD Assistant Professor Faculty of Economics University „Džemal Bijedić“ in Mostar

South East European Journal of Economics and Business

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"The Causal Link Between Savings and Economic Growth in Bosnia and Herzegovina"}

The causal link between savings and economic growth has been extensively discussed in the economic growth and development literature, but the question of the...

The Causal Link Between Savings and Economic Growth in Bosnia and Herzegovina

Data publikacji: 30 gru 2021

Zakres stron: 114 - 131

DOI: https://doi.org/10.2478/jeb-2021-0018

Słowa kluczowe
Saving, economic growth, macroeconomics, econometric analysis

© 2021 Irma Đidelija, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Causal Link Between Savings and Economic Growth in Bosnia and Herzegovina

Data publikacji: 30 gru 2021

Zakres stron: 114 - 131

DOI: https://doi.org/10.2478/jeb-2021-0018

Słowa kluczoweSaving, economic growth, macroeconomics, econometric analysis

© 2021 Irma Đidelija, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Słowa kluczowe
Saving, economic growth, macroeconomics, econometric analysis