Study Debunks Theory Linking Domestic Savings and Investment in Selected Countries
The study looked at the relationship between how much money a country saves and how much it invests in the Bahamas, Belize, Bolivia, Nicaragua, and Panama. The researchers found that there is a connection between these two things in the long term, which goes against a popular theory. However, they did not find a clear cause-and-effect relationship between saving and investing in the first four countries. In Panama, both saving and investing seem to influence each other.