A CRITICAL ASSESSMENT OF PAST INVESTIGATIONS INTO SINGAPORE'S SAVING BEHAVIOR

Abstract

This article aims to show that the literature so far has not been able to present a statistically robust answer to the question of what drove Singapore's spectacular savings rates. A substantial part of the literature — particularly earlier studies — must be rejected on methodological grounds since the time-series properties of the respective data series were not taken into consideration when choosing the appropriate testing method. Others have omitted potentially crucial determinants of savings or have wrongly disaggregated Gross National Savings. This unsatisfactory state of investigation into Singapore's saving behavior is unfortunate because savings play such a central role in Singapore's economic history since the country's independence. For future research the article also supplies new data series, which disaggregate Singapore's national savings after taking the country's peculiarities into consideration. The critical assessment is also intended as a guideline to future researchers of which mistakes to avoid and where potential pitfalls lie.