Evaluation of the long memory relationship between gross national product and saving in Taiwan

Abstract

To enhance precise analysis of the relationship between GNP (gross national product) and Saving (gross national saving), a long memory relationship function is applied. From experience, it is known that assuring the variables are always cointegrated or fractionally cointegrated is not easy, so this letter develops a measure function to estimate the long memory relationship between two variables. The empirical study shows that GNP and saving have the long memory relationship d= 0.1449.