<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>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.</p>
</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.

What drives the savings rate in middle -income countries?

Economics and Business Review

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"What drives the savings rate in middle -income countries?"}

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...

What drives the savings rate in middle -income countries?

Published Online: Jan 26, 2024

Page range: 56 - 73

Received: Dec 03, 2022

Accepted: Oct 29, 2023

DOI: https://doi.org/10.18559/ebr.2023.4.1072

Keywords
savings rate, Gross savings, Gross domestic savings, middle-income country

© 2023 Wiktor Błoch, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

What drives the savings rate in middle -income countries?

Published Online: Jan 26, 2024

Page range: 56 - 73

Received: Dec 03, 2022

Accepted: Oct 29, 2023

DOI: https://doi.org/10.18559/ebr.2023.4.1072

Keywordssavings rate, Gross savings, Gross domestic savings, middle-income country

© 2023 Wiktor Błoch, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
savings rate, Gross savings, Gross domestic savings, middle-income country