GDP Research Papers - Academia.edu (original) (raw)

Savings is known as a major factor in the economic development (Najafi, Ghorbani, 1998, p.48). Economists have always realized the importance of savings in the economic development (Komayjani, Rahmani, 1993, p.3). Each country needs investment to achieve economic growth; the necessary condition for investment is savings. (Mojtahed and Karami, 2003, p. 3). One of the problems in the economy of Iran and developing countries is the low rate of savings, and so the weak growth of investment. Thus, capital is considered as the main scarce factor in these countries. Hence, capital accumulation for economic growth and development of these countries is of great importance (Permeh, 2004,p.170). The purpose of this study, is to study the effect of growth rate of real GDP per capita on the savings rate in twelve (12) developing countries, (Islamic Republic of Iran, Botswana, the Dominican Republic, Zimbabwe, Niger, Burundi, Burkina Faso, Central African Republic, Rwanda, Togo, Nepal, Benin) and seven (7) developed countries (United States of America, Iceland, Luxembourg, Norway, Singapore, Greece, United kingdom). Data analysis as panel data with annual data from 1965 to 2010 is expressed in eviews7 and stata11 software. The results show the positive effects of the lags saving rate and the growth rate of real per capita GDP on the savings rate. The results are statistically significant. Also,The results show that the structure between the two groups (developed and developing countries) is different. Effectiveness rate and the growth rate of real GDP per capita on the savings rate in developed countries is lower than in developing countries.