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