The Implication of Savings and Investment on Economic Growth in the Commonwealth of The Bahamas.

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There have been several studies conducted with respect to the implications of savings and investment on economic growth for countries comprising Latin America, and the Caribbean; but very little attention has been given to the examination of such implications on the economic growth ofThe Bahamas.The main objective of this study is to investigate the effects of savings and investment on the economic growth of The Commonwealth of The Bahamas; in particular, trying to ascertain the degree of the impact of both gross domestic savings and gross domestic investment on economic growth in The Bahamas.This study analyzes the situation of the Commonwealth of The Bahamas, and through the utilization of the bounds testing approach within the autoregressive distributed lag model, the author sets out to determine whether savings, investment and growth are co-integrated.No evidence was found to support models that identify savings and investment as being the key drivers of growth.The results do however support previous theories that economic  growth lead to increased levels of saving in the long-run.
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