IS THE SAVINGS-LED GROWTH HYPOTHESIS VALID FOR ZIMBABWE?

Download This Article

Abstract

This study investigates the long run relationship between economic growth and gross domestic savings for Zimbabwe during the period 1980 to 2011. The causality relationship between savings and economic growth has been a subject of extensive debate for almost half a century now. There are currently two dominant views regarding the relationship between savings and economic growth. The first view maintains that it is the growth of savings that drives economic growth. The second view argues that it is economic growth that spurs savings expansion. Using the case study methodology, the study revealed that GDP per capita had a significant positive influence on the quantity and level of gross domestic savings and not the other way round. Policies that are targeted at boosting GDP per capita should be accelerated in order to promote long-term and sustainable growth gross domestic savings for in Zimbabwe.

Keywords: Zimbabwe, Gross Domestic Savings, Economic Growth, Case Study Methodology

How to cite this paper: Tsaurai, K. (2013). Is the savings-led growth hypothesis valid for Zimbabwe? Corporate Ownership & Control, 10(3), 9-13. https://doi.org/10.22495/cocv10i3art1