IDEAS home Printed from https://ideas.repec.org/a/bec/imsber/v4y2012i1p23-29.html
   My bibliography  Save this article

Revisiting The Householdâ??s Savings Function In Karak, Pakistan

Author

Listed:
  • Asmatullah

    () (Institute of Management Sciences, Peshawar)

  • Bashir Ahmad Khilji

    (Preston University, Islamabad)

  • Syed Waqar Hussain

    (Institute of Management Sciences, Peshawar)

  • M. Khalid Mughal

    (Preston University, Islamabad)

Abstract

The present study was undertaken in Karak in 2011 to investigate household’s savings behaviors in rural areas. A sample of 100 respondents was randomly selected and data was gathered through questionnaires. The pilot study was undertaken on 25 questionnaires to identify problems with our questionnaire and sampling techniques. During the pilot study, we observed that some of the respondents were reluctant to answer some key questions pertaining to income and consumption, for instance, and some other had problems with filling questionnaire which induced us for certain modifications. The data was analyzed using various forms of regressions while particular care was exercise to the underlying assumptions and data distribution. The techniques of estimations used were Ordinary Least Square (OLS) and Weighted Least Square (WLS). Our key conclusion is the rejection of common perception that lack of education in rural areas doesn’t motivate household to save more. Rather, the conclusion, on the basis of empirical data, reached by the study found that low banking network, sensitivity to Islamic perception about interest earning, large family size and high unemployment of mature and educated dependents cause household’s savings to be low. So it is recommended that govt. needs to launch employment-generation based projects in rural areas along with incentives packages to private sectors to extend banking facilities in rural areas, particularly Islamic banking services as well as proper population planning to control population growth. This will induce large number of small saver to develop banking habits and thus make savings more productive rather than keeping as idle cash balance or purchase of jewelry or real estate

Suggested Citation

  • Asmatullah & Bashir Ahmad Khilji & Syed Waqar Hussain & M. Khalid Mughal, 2012. "Revisiting The Householdâ??s Savings Function In Karak, Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 4(1), pages 23-29, April.
  • Handle: RePEc:bec:imsber:v:4:y:2012:i:1:p:23-29
    DOI: dx.doi.org/10.22547/BER/4.1.2
    as

    Download full text from publisher

    File URL: http://imsciences.edu.pk/files/journals/Vol.%203%20No.%201%20April%202012/(2)%20Asmatullah.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ashfaque H. Khan & Lubna Hasan & Afia Malik, 1992. "Dependency Ratio, Foreign Capital Inflows and the Rate of Savings in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 843-856.
    2. Aqdas Ali Kazmi, 1993. "National Savings Rates of India and Pakistan: A Macroeconometric Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 1313-1324.
    3. Aasim M. Husain, 1995. "Long-run Determinants of Private Saving Behaviour in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 34(4), pages 1057-1066.
    4. Mohsin Hasnain Ahmad & Zeshan Atiq & Shaista Alam & Muhammad S. Butt, 2006. "The impact of demography, growth and public policy on household saving: a case study of Pakistan," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 13(2), pages 57-71, December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Household's savings; regressions; WLS; OLS;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bec:imsber:v:4:y:2012:i:1:p:23-29. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Attaullah Shah). General contact details of provider: http://edirc.repec.org/data/imspepk.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.