How exactly is the savings-investment ratio of a country linked in to its economic growth?

Question

How exactly is the savings-investment ratio of a country linked in to its economic growth?

Answer 1

very simile.if people saving; that miens they have moor money than can spent, Oslo people if they  have Mooney. business are better because people porches moor goods

Answer 2

Not at all.

It is true that greater economic growth does require greater investment, but that investment doesn't have to come from within a country, it can come from abroad.

America has had a comparatively high growth rate while having a comparatively low savings rate

http://research.stlouisfed.org/fred2/ser...

because foreigners are more than willing to invest in the U.S.

On the other hand, Japan has always had a very high savings rate which helps account for Japanese economic growth over the long haul (they've tended to discourage foreign investment while the U.S. has welcomed it so Japan needed domestic savings):

http://www.japaneconomynews.com/2007/02/...

http://christianparty.net/japansaving.ht...

Most other developed countries are somewhere in between:

http://findarticles.com/p/articles/mi_m4...

Now, whether it is a good idea to have most of your investment coming from abroad is a separate question, but one of politics, not economics.