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Saving Trends in Southeast Asia: A Cross-Country Analysis

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  • Mr. Hamid Faruqee
  • Mr. Aasim M. Husain

Abstract

This paper investigates the long-run pattern of private saving in Indonesia, Malaysia, Singapore, and Thailand. These countries have not only maintained saving levels that are currently among the highest in the world but have also experienced a sustained increase in their rate of private saving over the past twenty years. Using a cointegration approach, this paper empirically examines the economic determinants underlying the saving trends in this group and the extent to which these countries share a common experience with respect to the factors accounting for their strong saving performance. The findings suggest that demographic shifts have been an important factor underlying regional saving trends with a similar long-run impact in each country, except for Indonesia where the effects of demographics have been even more pronounced.

Suggested Citation

  • Mr. Hamid Faruqee & Mr. Aasim M. Husain, 1995. "Saving Trends in Southeast Asia: A Cross-Country Analysis," IMF Working Papers 1995/039, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:1995/039
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    References listed on IDEAS

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    Cited by:

    1. Reinhart, Carmen M. & Talvi, Ernesto, 1998. "Capital flows and saving in Latin America and Asia: a reinterpretation," Journal of Development Economics, Elsevier, vol. 57(1), pages 45-66, October.
    2. Peter J. Montiel & Luis Servén, 2008. "Real Exchange Rates, Saving and Growth: Is there a Link?," Department of Economics Working Papers 2010-18, Department of Economics, Williams College.
    3. Johansson, Sara, 1998. "Life cycles, oil cycles, or financial reforms? The growth in private savings rates in Indonesia," World Development, Elsevier, vol. 26(1), pages 111-124, January.
    4. Marwan Thanoon & Ahmad Baharumshah, 2005. "What happened to savings during the financial crisis—a dynamic panel analysis of Asian-5 countries," Economic Change and Restructuring, Springer, vol. 38(3), pages 257-275, December.
    5. Johansson, Sara, 1996. "Life cycles, oil cycles, or financial reforms? The growth in private savings rates in Indonesia," SSE/EFI Working Paper Series in Economics and Finance 150, Stockholm School of Economics.
    6. Gregor Hopf, 2006. "A Critical Assessment Of Past Investigations Into Singapore'S Saving Behavior," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 51(01), pages 67-90.
    7. Baharumshah, Ahmad Zubaidi & Thanoon, Marwan A. & Rashid, Salim, 2003. "Saving dynamics in the Asian countries," Journal of Asian Economics, Elsevier, vol. 13(6), pages 827-845, January.
    8. Carmen M. Reinhart & Ioannis Tokatlidis, 2003. "Financial Liberalisation: The African Experience," Journal of African Economies, Centre for the Study of African Economies, vol. 12(Supplemen), pages 53-88, September.
    9. Mr. Christian Thimann & Mrs. Anuradha Dayal-Gulati, 1997. "Saving in Southeast Asia and Latin America Compared: Searching for Policy Lessons," IMF Working Papers 1997/110, International Monetary Fund.
    10. Carlos Esteban Posada & cposadpo@banrep.gov.co, 1995. "Ahorro y Modelos Macroeconómicos," Borradores de Economia 035, Banco de la Republica de Colombia.
    11. 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, April-Jun.
    12. Griffith-Jones, Stephany & Montes, Manuel F. & Nasution, Anwar (ed.), 2001. "Short-Term Capital Flows and Economic Crises," OUP Catalogue, Oxford University Press, number 9780198296867.
    13. Booth, Anne, 1999. "Initial Conditions and Miraculous Growth: Why is South East Asia Different From Taiwan and South Korea?," World Development, Elsevier, vol. 27(2), pages 301-321, February.
    14. Carlos Esteban Posada P., 1995. "Ahorro Y Modelos Macroecon�Micos," Borradores de Economia 1956, Banco de la Republica.
    15. Mr. Hamid Faruqee, 2002. "Population Aging and its Macroeconomic Implications: A Framework for Analysis," IMF Working Papers 2002/016, International Monetary Fund.

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