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The Effects of Government Policy And Capital Liberalisation on Private Saving in SEACEN Countries

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  • Seung-Je Hong

Abstract

This paper consists of two parts. Part I analyses the effects of government policy on the rate of private saving using both time series data and cross-country panel data for SEACEN countries. Part II examines the reasons for the decline in private saving ratios in several SEACEN countries since the 1990s which has coincided with capital liberalisation. Empirical tests indicate that the influx of capital from overseas unleashed by capital liberalisation has substituted for domestic saving. The study concludes with policy suggestions to promote domestic saving and achieve long-run sustainability of the external current account deficit in the region.

Suggested Citation

  • Seung-Je Hong, 1998. "The Effects of Government Policy And Capital Liberalisation on Private Saving in SEACEN Countries," Staff Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number sp60.
    • Handle: RePEc:sea:spaper:sp60
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    File URL: http://www.seacen.org/GUI/pdf/publications/staff_paper/1998/SP60.pdf
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    References listed on IDEAS

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