EVALUATION OF THE EFFECT OF LIQUIDITY GROWTH ON SAVING RATE IN THE DEVELOPING COUNTRIES
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 7
Abstract
The role of savings in determining economic growth and investment is among issues that have always been considered in the formulation of policy and economic theories. This fact has been accepted that it is a quite necessary action to put aside a part of production i.e. to create saving to be converted in to production capital for maintaining the level of existing welfare and also achieving a higher level of welfare.The aim of the present study is to evaluate the role of liquidity growth on saving rates in 11 developing countries (Ecuador, Venezuela, Colombia, Armenia, Brazil, Iran, Azerbaijan, Turkey, Tunisia, China and Thailand) within the period 2001-2010. In this paper, the software EVIEWS and panel data analysis were used to evaluate the effect of liquidity growth on savings rates.Present study demonstrates the undeniable role of economic growth on saving, because the estimations results indicate that although both variables of liquidity ratio and economic growth have significant and positive effect on saving, but economic growth is more effective which is fully reasonable.
Authors and Affiliations
Mohammad Reza Monjazeb| Faculty Member of University of Economic Sciences, Marzieh Rashvand Sadeghi| Master student of University of Economic Sciences, Kobra Oladi| Master student of University of Economic Sciences
Keywords
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