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Title: |
An Alternative Framework of Estimating Investment and Saving Functions
for Developing Countries: An Application to Time-Series Data for
Sub-Sahara Countries |
| Author: |
Odedokun, M. O. |
| Author
Affiliation: |
U Ilorin |
| Source: |
International Economic Journal, Autumn 1992, v. 6, no. 3, pp. 49-74 |
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Publication Date: |
Autumn 1992 |
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Abstract: |
The study adopts the reduced-form approach
that is within the flow-of-funds framework in examining determinants of
investment, domestic saving and foreign saving. Time-series annual data
for 25 sub-Saharan countries are employed and six possible determinants
are considered, with their general primary effects being as follows: (1)
foreign reserves availability promotes investment (2) real interest rate
has rather ambiguous effects (3) change in GDP promotes investment and
domestic saving and retards foreign saving (4) domestic credit
availability enhances investment (5) world economic growth reduces
foreign saving and (6) real exchange rate devaluation reduces investment
and foreign saving. These primary effects are also with the expected
Spillover effects. |
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