Saving-investment Behaviour in Pakistan: An Empirical Investigation

Abstract

This paper explores the saving-investment behaviour in Pakistan by identifying their patterns over time and across selected Asian countries. Further potential determinants were empirically tested, based on theoretical foundations of modelling for saving and investment behaviour. Savings in Pakistan for our sample period showed a positive response to GDP growth and government current expenditure while it remained insensitive to interest rates. On the other side, domestic savings and short-run expected returns positively affected investment whereas uncertainty reduced investment.saving Investment, Pakistan