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Dependency Ratio, Foreign Capital Inflows and the Rate of Savings in Pakistan

  • Khan, Ashfaque Hasan
  • Hasan, Lubna
  • Malik, Afia

Domestic resource mobilization is one of the key determinants of sustained economic growth. The savings rate in Pakistan is sensitive to per capita income, dependency ratio, real interest rate and foreign capital inflows. Dependency ratio and foreign capital inflows exert a depressing effect on savings while income and real interest rate have a positive effect. Realistic interest rate policies in the context of liberalized financial markets are required to mobilize greater savings.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7348.

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Date of creation: 1992
Date of revision:
Publication status: Published in The Pakistan Development Review 4.31(1992): pp. 843-856
Handle: RePEc:pra:mprapa:7348
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