High rates of saving and investing in the private sector promote economic growth by
Abstract This essay deals with the saving and investment trends in the east Asian economies. They generated high rates of saving and used the resources productively. The high rates of saving reflect high rates of both private saving and public sector saving. The high investment rate was not only due to high saving rate, but also a relatively high level of inflow of foreign direct investment in some, backed by the policy of openness to trade and investment. Show
Journal Information The Economic and Political Weekly, published from Mumbai, is an Indian institution which enjoys a global reputation for excellence in independent scholarship and critical inquiry. First published in 1949 as the Economic Weekly and since 1966 as the Economic and Political Weekly, EPW, as the journal is popularly known, occupies a special place in the intellectual history of independent India. For more than five decades EPW has remained a unique forum that week after week has brought together academics, researchers, policy makers, independent thinkers, members of non-governmental organisations and political activists for debates straddling economics, politics, sociology, culture, the environment and numerous other disciplines. Publisher Information First published in 1949 as the Economic Weekly and since 1966 as the Economic and Political Weekly, EPW, as the journal is popularly known, occupies a special place in the intellectual history of independent India. For more than five decades EPW has remained a unique forum that week after week has brought together academics, researchers, policy makers, independent thinkers, members of non-governmental organisations and political activists for debates straddling economics, politics, sociology, culture, the environment and numerous other disciplines. Rights & Usage This item is part of a JSTOR Collection. The private sector has played a significant role in India's growth since the economy was opened up in 1991. Image: REUTERS/Amit Dave Don't miss any update on this topicCreate a free account and access your personalized content collection with our latest publications and analyses. License and Republishing World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use. The views expressed in this article are those of the author alone and not the World Economic Forum. Global Agenda The Agenda WeeklyA weekly update of the most important issues driving the global agenda
Published on Wednesday, April 14, 2021 | Updated on Wednesday, April 14, 2021 In the long run, countries with higher private investment experience higher rates of growth. Therefore, good public policies that encourage permanent
increases in private investment rates lead to increases in long-term economic growth and welfare. Documents to download
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You may also be interested inHow does the private sector contribute to economic growth?It provides goods and services, generates tax revenues to finance essential social and economic infrastructure, develops new and innovative solutions that help tackle development challenges and it is a central actor in addressing climate change.
How does an increase in the saving rate affect economic growth?A rise in aggregate savings would yield larger investments associated with higher GDP growth. As a result, the high rates of savings increase the amount of capital and lead to higher economic growth in the country.
How does investment promote economic growth?Business investment can affect the economy's short-term and long-term growth. In the short term, an increase in business investment directly increases the current level of gross domestic product (GDP), because physical capital is itself produced and sold.
How investment in the economy is supported from saving by the private sector?The private sector has strong links to higher investments in education and vocational training to bridge skill gaps in the economy, facilitating skills and training programmes, creating partnerships with educational institutes and experts and, most importantly, creating a future-ready and talented workforce.
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