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The mobilization of savings for growth and development in developing countries. Download references. You can also search for this author in PubMed Google Scholar.
Artur Ribaj designed coordinated this research and drafted the manuscript. Fitim Mexhuani collected the data and carried out the data analyses. The authors read and approved the final article. Correspondence to Artur Ribaj. Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material.
If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. Reprints and Permissions. Ribaj, A. The impact of savings on economic growth in a developing country the case of Kosovo. J Innov Entrep 10, 1 Download citation.
Received : 02 May Accepted : 17 November Published : 08 January Anyone you share the following link with will be able to read this content:. Sorry, a shareable link is not currently available for this article. Provided by the Springer Nature SharedIt content-sharing initiative. Skip to main content. Search all SpringerOpen articles Search. Download PDF. Abstract The correlation between savings and economic growth has been the subject of research for some well-known economists.
Methods To effectively implement the Johansen cointegration test and to find out the relationship between the gross domestic product GDP and domestic savings, this study analyzed the annual data of 10 commercial banks Footnote 3 in Kosovo for the period of — GDP — Source: Data published by commercial banks and CBK processed by the authors.
Full size image. Table 1 Ganger causality test Full size table. Table 3 ADF test for the first difference Full size table. Table 4 Building the model with deposits as the only factor Full size table. Table 5 Building the model with deposits and loans as the factors Full size table. Table 6 Building the model with remittances as the only factor Full size table. Table 7 Building the model with deposits and remittances as factors Full size table. Table 8 Building the model with deposits, remittances, and loans as factors Full size table.
Notes 1. References Agu, C. Google Scholar Bisat, A. Google Scholar Cinaj V. Google Scholar Machine Learning Plus Google Scholar Sabra, M.
Google Scholar Shaw, E. Google Scholar Solow, R. Google Scholar Thirlwall, A. Google Scholar Download references. Funding This article did not have donation or other funding sources. View author publications. Ethics declarations Competing interests The authors declare that they have no competing interests. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile.
Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Capital formation is a term used to describe the net capital accumulation during an accounting period for a particular country. The term refers to additions of capital goods , such as equipment, tools, transportation assets, and electricity.
Countries need capital goods to replace the older ones that are used to produce goods and services. If a country cannot replace capital goods as they reach the end of their useful lives , production declines. Generally, the higher the capital formation of an economy, the faster an economy can grow its aggregate income.
Producing more goods and services can lead to an increase in national income levels. To accumulate additional capital , a country needs to generate savings and investments from household savings or based on government policy. Countries with a high rate of household savings can accumulate funds to produce capital goods faster, and a government that runs a surplus can invest the surplus in capital goods.
As an example of capital formation, Caterpillar CAT is one of the largest producers of construction equipment in the world. CAT produces equipment that other companies use to create goods and services. Usually, the higher the capital formation in the economy, the faster it grows to generate income. A scenario wherein producing excessive goods and services may result in an increase in the income levels in the country.
To amass additional capital, a country has to churn out savings and investments from households and policies of the government. Nations that have a higher rate of household savings have more chances of amassing funds to produce capital goods much faster, and a government running on a surplus may invest the excess in capital goods. The World Bank is the source of technical and financial assistance to the countries belonging to the developing category.
The main intention of the World Bank is to eradicate extreme poverty in the world through its various initiatives and programs supported by it. The World Bank tracks and follows the gross capital formation.
The World Bank defines it as the expenses apart from fixed assets, plus the actual change in the inventories. Plant, equipment, buildings, and machinery are a few examples of fixed assets. Inventories consist of goods and raw material that are up for sale. Products IT.
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