Akademik Veri Yönetim Sistemi
MONTENEGRIN JOURNAL OF ECONOMICS, cilt.18, sa.3, ss.145-153, 2022 (ESCI)
This study examines whether there is a long-term relationship between gross domestic savings, fixed capital investments and economic growth in 7 Caucasian and Central Asian countries, and the causality relationship between the variables. The empirical evidence covering the period between 1993 and 2017 suggests that there is a cointegration relationship in the model where economic growth is the dependent variable. According to the panel VECM Granger causality analysis, domestic savings are the causality of economic growth. Furthermore, economic growth was found to be the causality of fixed capital investments and domestic savings was also found to be the causality of fixed capital investments. According to the findings, policy recommendations that will allow domestic savings to reach a sufficient level for investments are needed to be developed for the economies of countries to be able to attain the goal of sustainable growth. Thus, the decisions to be taken by policymakers in collaboration with economists will enable domestic savings to be used in investments.