The Examination of the Relationship between Savings and Economic Growth within the Example of Developed and Developing Country Groups

The relationship between savings and economic growth and the direction of this relationship is one of the important discussion topics in economics literature. In this study, the relationship between the relevant variables and the direction of this relationship has been examined. In this context, some theoretical and empirical studies about the relationship between savings and economic growth have been discussed and the datas of two separate groups, which are consisted of 16 developed and 24 developing countries, have been analyzed by using Swamy (1970) random coefficient regression and Dumitrescu-Hurlin (2012) panel granger causality test. As a result of the analyzes , the positive impact of savings on economic growth both for the group of developed countries and for the group of developing countries, and the existence of the bi-directional causality relationship between the relevant variables in both groups of countries have been obtained. It has been understood that the effect of savings on economic growth is greater in developed countries than in developing countries