What drives the savings rate in middle-income countries?

Authors

DOI:

https://doi.org/10.18559/ebr.2023.4.1072

Keywords:

savings rate, gross savings, gross domestic savings, middle-income country

Abstract

The aim of this study is to examine the factors that influence the savings rate in middle-income countries and to compare the results with other studies devoted to different subgroups of countries. Among the potential determinants of savings the study considers: demography, income level, financial sector, international trade, inflation and the structure of the economy. The research sample is confined to 44 middle-income countries and covers the period between 2000 and 2019. Six model specifications are constructed using three different estimators: FE, FGLS and PCSE. In the next step the same models are estimated using alternative dependent variables. Results suggest that industrial share in GDP has a positive impact on the savings rate. On the other hand a  negative relationship was diagnosed between the savings  and unemployment rates, the share of labour compensation in GDP, military expenditure, inflation and the  young dependency ratio.

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Published

2023-12-11

How to Cite

Błoch, W. (2023). What drives the savings rate in middle-income countries? . Economics and Business Review, 9(4). https://doi.org/10.18559/ebr.2023.4.1072

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Section

Research article- regular issue