Transitional dynamics of the saving rate and economic growth

Abstract We estimate the relationship between GDP per capita growth and rate of national saving using a panel 130 countries over period 1960–2017. find that increases (decreases) in poor (rich countries), higher credit-to-GDP ratio decreases as well income elasticity rate. develop model with credit constraint to explain growth-saving by behavior entrepreneurs at both intensive extensive margins. further present supporting evidence for our theoretical findings utilizing cross-country time series data number new businesses registered corporate