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The present study attempts to determine the direction of causality between domestic saving and economic growth in Cambodia, using data for the period 1989–2012. The empirical analysis was based on Granger Causality Test. The study found that domestic saving does not Granger cause economic growth. This finding is contrary to the conventional wisdom that causality runs from saving to economic growth. Economic growth itself is also not found to Granger cause saving. So it can be concluded that domestic saving and economic growth are independent of each other in Cambodia.

Causal Relationship between Domestic Saving and Economic Growth: Evidence from Cambodia