African Studies Commons^™

Are Savings Working For Zambia’S Growth?, Chrispin Mphuka

Zambia Social Science Journal

This article analyses the effect of savings on economic growth in Zambia. Using vector auto regression, the article finds that economic growth ‘Granger’ causes domestic savings. This goes contrary to the neoclassical theory on the relationship between economic growth and savings. However, the article argues that a case of increasing domestic savings mobilization holds on the premise that doing so may influence growth indirectly by attracting partnerships with international capital thereby helping to inject new technology in the economy which is undoubtedly vital for growth. The argument is strengthened further by observing that East Asian countries have grown faster than …