An econometric modelling of the savings – investments nexus for Ghana

Introduction. The problem under discussion is whether savings are associated with investments in the long-term and predict investment feedback or not. Addressing important since it informs policy formulation financial sector ensuring efficient intermediation. purpose of article looks at savings-investment relationship for Ghana during period 1960 to 2016. Methodology. Utilizing ARDL (with bounds testing) approach, Granger predictive test, Generalised Impulse Response Function, Variance decomposition function. Results. results indicate that a 1% increase savings, GDP development would result 0.069%, 0.266% 0.125% respectively short-term. It discovered do not cause long-run but rather short-run. causality test establishes unidirectional running from Discussion Conclusion. ramifications finding there capital fixed status globally. Future examinations ought consider structural break(s) issues as well panel analysis determine if findings current study be reproduced.