Low Savings Rates in the Economic Community of West African States (Ecowas): The Role of the Political Instability-Income Interaction

Nurudeen Abu, Mohd Karim and Aziz Mukhriz Izraf Azman ()
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Aziz Mukhriz Izraf Azman: School of Economics, Finance and Banking, Universiti Utara Malaysia

South East European Journal of Economics and Business, 2014, vol. 8, issue 2, 53-63

Abstract: This paper employs PCSE, OLS and TSLS with random effects to investigate the impact of the political instabilityincome interaction on savings in ECOWAS countries during the period 1996-2012. The empirical evidence illustrates that higher political stability is associated with higher savings and income levels moderate the adverse effect of political instability on savings, indicating that the impact of political instability on savings is higher in low income ECOWAS countries, but lesser at higher levels of income. The paper recommends the promotion of political stability via increases in incomes to raise savings in the ECOWAS region.

Keywords: savings; political instability (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:vrs:seejeb:v:8:y:2014:i:2:p:11:n:5

DOI: 10.2478/jeb-2013-0010

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