Impact Of Domestic Savings on Economic Growth in South Africa (1970 -2022)

Published: 11 April 2024| Version 1 | DOI: 10.17632/j6hr6bxt8s.1
Contributor:
Richard Wamalwa Wanzala

Description

Depending on the data's availability, annual time series data covering the years 1970–2022 were used in this study. Fedderke & Liu (2015) claim that because countries exhibit greater levels of heterogeneity, time series data may be more trustworthy than panel data. The World Bank's World Development Indicators provided the economic growth data, which was proxied by GDP. The South African Reserve Bank provided the information on savings for households, governments, and corporations. Household savings (HHS), government savings (GOS), corporate savings (COS), and gross domestic product (Y_t ) are the study's variables of interest. After direct taxes are paid, the HHS can be characterized as a portion of current income that is neither transferred nor consumed as part of household current consumption (Xu, 2023). According to Sisay (2023), household savings include current outlays made in the form of a decrease in debt, such as capital repayment on loans for consumer durables and housing. Typically, HHS savings are separated into contractual and discretionary savings. Nonetheless, the distinction between the two forms of HHS is not very important for the purposes of this investigation.

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Institutions

Jomo Kenyatta University of Agriculture and Technology College of Agriculture & Natural Resources

Categories

Economic Development, Macroeconomic Data

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