Does Developing Asia Save More? Evidence from a Panel of High Saving Nations in Asia

Sibabrata Das and Partha Ray

The IUP Journal of Applied Economics, 2012, vol. XI, issue 1, 29-55

Abstract: : The high saving of developing Asian economies has attracted attention of the researchers and policy makers alike. While various country-specific papers have investigated this issue, the present paper looks into this subject in a panel setting discerning the common variables influencing the saving behaviour in developing Asian economies. In particular, the saving behavior of six high saving countries in developing Asia, viz., China, India, Indonesia, Malaysia, the Philippines and Thailand, have been probed in a panel-data framework over the period 1990 through 2007. Specifically, two questions are examined: (a) Does developing Asia save more? and (b) What are the determinants of Asian savings? In the present study, answer to the first question emerges as affirmative from the stylized facts. Furthermore, factors such as high growth, low age-dependency, increasing degree of financial deepening, presence of liquidity constraint, remittances, terms of trade shock and human capital formation emerge as key determinants of savings from the econometric analysis of this panel of six countries. Thus, it seems that the high savings of developing Asian nations can be explained in terms of these standard variables. This has important implications for the way ahead and policy options for resolving global imbalances.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (3)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:icf:icfjae:v:11:y:2012:i:1:p:29-55

Access Statistics for this article

More articles in The IUP Journal of Applied Economics from IUP Publications
Bibliographic data for series maintained by G R K Murty ().