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What Drives Private Saving Across the World?

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  • Loayza, N.
  • Schmidt, K.
  • Serven, L.

Abstract

Saving rates display considerable variation across countries and over time. This paper investigates the factors behind these broad saving disparities using a large cross-country time-series data set constructed for the World Bank Saving project. The paper assesses empirically the policy and non-policy determinants of saving. It follows the empirical literature on saving by using an encompassing empirical approach including a number of potentially relevant saving determinants. However, the paper extends the literature in several dimensions. It uses the largest data set on aggregate saving measures assembled to date. It explores both national and private saving determinants. It uses panel instrumental variable techniques that allow correcting for endogeneity and heterogeneity through "internal" instruments. Finally, it performs a variety of robustness checks to changes in estimation.

Suggested Citation

  • Loayza, N. & Schmidt, K. & Serven, L., 1999. "What Drives Private Saving Across the World?," Papers 47, Cambridge - Risk, Information & Quantity Signals.
    • Handle: RePEc:fth:cambri:47
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    More about this item

    Keywords

    SAVINGS ; EVALUATION;

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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