Author:
A. Burney Nadeem,Khan Ashfaque H.
Abstract
Domestic resource mobilization is one of the key determinants
of sustained economic growth. Pakistan's perfonnance with regard to
domestic resource mobilization has been poor despite maintaining a
respectable economic growth rate. Why is the savings rate so low in
Pakistan? In this paper we analyse the household savings behaviour in
Pakistan, using micro level data of the Household Income and Expenditure
Survey (HIES) for the year 1984-85. Three different non-linear savings
functions attributed to Keynes, Klein, and Landau are estimated
separately for the urban and the rural households, using the Ordinary
Least Squares (OLS) technique. It is found that the average income and
saving of an urban household are considerably higher than those of
overall Pakistan or a rural household. However, contrary to the general
belief, it is found that the propensity to save of the rural households
is much higher than that of their urban counterparts. The dependency
ratio and the various categories of education are found to have a
negative influence on household savings. No systematic relationship is
found between savings and the employment status and occupation of the
household head. It is found, however, that saving increases with age but
tends to decline when the age crosses a certain limit - a finding
consistent with the Life Cycle Hypothesis.
Publisher
Pakistan Institute of Development Economics (PIDE)
Subject
Development,Geography, Planning and Development
Cited by
20 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献