DIA 2016: Chapter 5: Saving For Stability (Tables and Figures)
Countries invest in physical capital in order to grow. In principle, domestic investment can be financed with either national or foreign financing. However, foreign financing is not a good substitute for national financing. To begin with, it may not be available. Moreover, it is generally more expensive or more uncertain, or both. Consequently, the scarcity of national saving to finance good investment opportunities is a constraint to growth.