Political Stability and the Resolve to Save: The Case of Pakistan

Areeba Khan, Fatima Farooq, Sohail Saeed and Owais Shafique

Journal of Business and Social Review in Emerging Economies, 2019, vol. 5, issue 2, 323-334

Abstract: Savings is potential solution to consume the scarce resources in an efficient way, which helps large scale production, improved productivity of the labor and result in increased economic development. The purpose of this study is to examine how macroeconomic indicators like GDP growth rate, income, inflation rate and interest rate affect gross national savings rate of Pakistan and how political stability influence the relationship between these four macroeconomic indicators and savings rate. Using 10 years macroeconomic data of Pakistan from year 2006-2015, multiple regression analysis technique was run and& it was found that all four macroeconomic indicators significantly affects the savings rate. Income appeared to be strongest predictor in causing an increase in the savings rate. Although GDP found to be have an inverse relationship with savings rate. Political stability appeared to be non-significant in influencing the relationship between macroeconomic factors and savings rate.

Keywords: Political Stability; Inflation Rate; Interest Rate; Income; GDP Growth Rate; Savings Rate (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:src:jbsree:v:5:y:2019:i:2:p:323-334

DOI: 10.26710/jbsee.v5i2.922

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