The Relationship Between Savings and Investment: Evidence From Jordan

• Autores: Amro Alzghoul, Omar Al kasasbeh, Ghaith Abdulraheem Ali Alsheikh, Ismail Yamin
• Localización: International Journal of Professional Business Review: Int. J. Prof.Bus. Rev., ISSN 2525-3654, ISSN-e 2525-3654, Vol. 8, Nº. 3, 2023 (Ejemplar dedicado a: Continuous publication; e01425)
• Idioma: inglés
• DOI: 10.26668/businessreview/2023.v8i3.1724
• Enlaces
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• Resumen

  • Purpose: This study aimed to examine the relationship between savings and investment in the Jordanian economy during the period (1980-2020).

      Design/Methodology/Approach: This study was done using Augmented Dicky Fuller and Phillips-Perron unit root tests, and Lumsdaine and Papell unit root tests with structural breaks to determine if the time-series variables are stable or not. The Autoregressive Distributed Lag (ARDL) Bounds test method was used in this study to test long-run relationship between savings and investment   Findings: The findings of the Bounds test suggest a term savings-investment relationship. This outcome is consistent with a number of recent research reviewed in the literature that have shown that saving and investment are co-integrated in the long term.

      Practical implications: keeping a sustainable supply of savings should be a top policy goal for economic stability, which can assist policymakers and institutions in selecting their future actions.

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