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On Some Determinants of Saving in Developed and Under-Developed Countries

In: Problems in Economic Development

Author

Listed:
  • H. S. Houthakker

    (Harvard University)

Abstract

For the analysis of economic development, the principal question concerning savings is whether or not savings increase more than proportionately to income. In virtually all theories of growth, capital formation plays some part, and it is therefore important to know how it can be financed. The question is crucial for those theories — now somewhat discredited — which regard capital formation as the primary means of raising income levels, because suitable variations in the savings-income ratio are then needed to explain why some countries stay poor in the absence of foreign investment. Theories of the latter variety would be left hanging in mid-air if the savings-income ratio did not vary significantly among countries or in the long run.

Suggested Citation

  • H. S. Houthakker, 1965. "On Some Determinants of Saving in Developed and Under-Developed Countries," International Economic Association Series, in: E. A. G. Robinson (ed.), Problems in Economic Development, chapter 0, pages 212-227, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-15223-0_10
    DOI: 10.1007/978-1-349-15223-0_10
    as

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