ABSTRACT
In this article, we use a wavelet-based Granger causality approach to examine the multi-scale causality between saving and growth for China. We show that significant causality runs from saving to growth for most timescales, whereas multi-scale causality from growth to saving is not statistically significant. Our subsample results suggest that economic systems have remarkable effects on the multi-scale causality. Overall, our study provides a novel perspective to deeply explore the relationships between macroeconomic variables.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1 We perform the BDS test based on the estimated residuals.
2 As recommended by Diks and Panchenko (Citation2006), the lag length is set to 1.