Abstract
This study endeavour’s to identify in detail the behaviour of investment and saving in Pakistan's economy. Both investment and saving have a dynamic role in economic growth and development. Gross domestic product, remittances, income, dependency rate, taxes, labor participation rate, national saving, and national investment are included as independent variables for this study; data were obtained from the Pakistan Bureau of Statistics and World Bank for the years (1980-2016). The results show that the relationship between Investment and Interest rate is negative, while the relationship between saving and interest rate is positive. There is a dire need to review the monetary policy issued by the State Bank of Pakistan.
Highlights
Saving has been outlined as equal in the amount being for communities merely unique aspects of a similar factor
Upper-interest rates cut back investment because of higher charges increase the cost of borrowing and require investment to have the value of return to be successful
This study was conducted for the analysis of investment and saving behavior in Pakistan
Summary
Saving has been outlined as equal in the amount being for communities merely unique aspects of a similar factor. Several writers have given special definitions to those not equal (Collom & Lasker, 2016). Others have written at the assumption that they may be unequal without prefacing their discussion with any definitions. Saving in most cases converted briefly to money even though sure varieties of saving, similar to pension price range, personal retirement accounts (IRAs), and foster lengthy-time period financial savings (Hurd, 1990). Everyone concurs in meanings via saving the excess of the source of revenue over what's spent on consumption. Saving is an important factor in economic growth. Saving and investment are unique aspects of a similar coin (Firth & Yamey, 2013)
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