What drives the savings rate in middle -income countries?

Błoch Wiktor ()
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Błoch Wiktor: University of Lodz, Faculty of Economics and Sociology, ul. Prez. G. Narutowicza 68, 90-136 Łódź

Economics and Business Review, 2023, vol. 9, issue 4, 56-73

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.

Keywords: savings rate; Gross savings; Gross domestic savings; middle-income country (search for similar items in EconPapers)
JEL-codes: D15 E21 O16 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecobur:v:9:y:2023:i:4:p:56-73:n:6

DOI: 10.18559/ebr.2023.4.1072

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