Saving-investment Behaviour in Pakistan: An Empirical Investigation

Saving and investment are two key macro variables with micro foundations which can play a significant role in economic growth, inflation stability and promotion of employment especially if seen in the context of a developing country. For self-reliance and growth objectives, mobilisation of domestic resources and their efficient utilisation are the two major policy oriented focuses today [Khan (1993)]. National savings are critically important to help maintain a higher level of investment which is a key determinant for economic uplift. Thereby, necessitating the analysis of saving-investment behaviour and its determinants for policy implications; this is a demanding area because of continuing debate on the potential role of their determinants.