Title : Saving-Economic Growth Nexus in Myanmar: Co-integration and  Causality analysis

Keywords : Saving, , Economic growth, Gross Domestic Product, Vector Error correction model, Keynes's theory, Solow's model

Authors : Zaw Htet Pine

Description : Savings are important at both Micro and Macro level of a country. Increased Saving of people raises the economic growth and encourages investment source for the development of economy. This paper aimed at investigating causal relationship between gross domestic saving and economic growth (measuring with GDP in general sense) and identifying this relationship is unidirectional or bidirectional in Myanmar. And it is to test fitting of Solow's model and Keynes's theory for Myanmar.  The study covers the period (1961- 2018). Methodology is based on the econometrics analytical approach to evaluate two -variable relationship by employing Augmented Dickey-fuller test, co-integration, Vector Error correction model and causality techniques. The study found that saving has a positive impact on economic growth in the long-term and Solow's model is consistent with Myanmar.