 Comparing Savings Behavior in Asia and Latin America: The Role of Capital Inflows and Economic GrowthMarwan Abdul-Malik Thanoon and Ahmad Zubaidi Baharumshah () Journal of Developing Areas, 2012, vol. 46, issue 1, 113-131 Abstract: This paper investigates the determinants of savings in Asia and compares them with those of the economies in Latin America. The evidence based reveals that countries in the two regions share some common features with respect to their savings rates that are largely affected by (1) international capital inflows, which, in general, displace domestic savings in less than one-to-one fashion; (2) dependency ratios, hence supporting life-cycle hypothesis; and (3) the size of the export sector which can contribute positively to national savings. Despite these similarities, a number of important differences can be identified across country groups. First, economic growth affects national savings positively (negatively) in Asia (Latin America). Second, the long-term negative impact of capital flows on domestic savings appears to be considerably weaker in the Asian countries compared to the Latin American countries. Together, the two factors explain why savings ratios may differ markedly between the two regions. Keywords: National Savings; Life-cycle Hypothesis; Foreign Capital (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:jda:journl:vol.46:year:2012:issue1:pp:113-131 Access Statistics for this article More articles in Journal of Developing Areas from Tennessee State University, College of Business Contact information at EDIRC. |
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