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Title: |
Domestic Saving and Foreign Investment in Australia: A Granger Causality
Test |
| Author: |
Shan, Jordan;
Sun, Fiona |
| Author
Affiliation: |
Victoria U Technology; Centre for Strategic
Econ Studies, Victoria U Technology |
| Source: |
International Economic Journal, Winter 1998, v. 12, no. 4, pp. 79-87 |
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Publication Date: |
Winter 1998 |
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Abstract: |
This paper investigates the nature of the
causal relationship between domestic saving and foreign investment in
Australia using the Granger no-causality test procedure developed by
Toda and Yamamoto (1995). The findings in the paper suggest that foreign
investment has Granger-caused domestic saving in Australia but that no
causality was found from saving to foreign investment. Therefore, the
results reported in the paper reject the arguments by FitzGerald (1993)
and support, indirectly, the Pitchford (1990) hypothesis in relation to
the foreign debt debate in Australia and are consistent with the results
of Layton and Makin (1993). |
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