Determinants of National Saving Rate in Pakistan
Although Pakistan achieved a respectable rate of economic growth during the last three decades, its performance about saving has been poor. Thus, Pakistan’s saving performance and its overall economic performance appear to be incongruous. This paper identifies some of the important factors that are affecting the national saving rate in Pakistan. Beside per capita income, an increase in real interest rate is likely to increase national saving rate. High dependency ratio and external indebtedness on the other hand reduce national savings rate. Contrary to the findings of Griffin and Eons it is found that, the inflows of foreign capital increase national savings with a lag of one or two years. Furthermore, the positive association between openness of the economy and national saving rate is found in the case of Pakistan.
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Volume (Year): 47 (1994)
Issue (Month): 4 ()
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