Saving determinants in Malaysia

Saving is an important indicator of economic development where it is viewed as an element which finances domestic investment to achieve economic growth. The purpose of this paper is to examine the saving determinants in Malaysia. By using Life Cycle Model setting, this study employs a saving functio...

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Main Authors:	Hafizah Hammad Ahmad Khan, Hussin Abdullah
Format:	Article
Published:	Penerbit Universiti Kebangsaan Malaysia 2010
Online Access:	http://journalarticle.ukm.my/3370/ http://journalarticle.ukm.my/3370/

id	ukm-3370
recordtype	eprints
spelling	ukm-33702012-03-20T04:07:15Z http://journalarticle.ukm.my/3370/ Saving determinants in Malaysia Hafizah Hammad Ahmad Khan, Hussin Abdullah, Saving is an important indicator of economic development where it is viewed as an element which finances domestic investment to achieve economic growth. The purpose of this paper is to examine the saving determinants in Malaysia. By using Life Cycle Model setting, this study employs a saving function which includes per capita income, rate of returns on savings deposit, government fiscal balance, young age dependency rate, and old age dependency rate and also inflation rate as the potential determinants of saving. The results showed that per capita income, rate of returns, old age dependency and inflation rate are the determinants of national savings while per capita income, rate of returns, government fiscal balance, young age dependency, old age dependency and inflation rate are the determinants for private saving in a long run. In a short run we found that per capita income, government fiscal balance and young age dependency are the significant determinants of national saving in a short run while private saving determinants are found to be per capita income, rate of return and young age dependency. Furthermore, variable ECM which indicates the speed of adjustment shows that more than 75% of the adjustment is completed in a year for national saving determinants, while more than 86% of the adjustment is completed in a year for private saving determinants. Results obtained in this study suggest that policy makers should monitor all significant variables since they give impact on the savings rate. Penerbit Universiti Kebangsaan Malaysia 2010-12 Article PeerReviewed Hafizah Hammad Ahmad Khan, and Hussin Abdullah, (2010) Saving determinants in Malaysia. Jurnal Ekonomi Malaysia, 44 . ISSN 0127-1962 http://www.ukm.my/penerbit/JEM/JEM-44-03-abstrak.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
description	Saving is an important indicator of economic development where it is viewed as an element which finances domestic investment to achieve economic growth. The purpose of this paper is to examine the saving determinants in Malaysia. By using Life Cycle Model setting, this study employs a saving function which includes per capita income, rate of returns on savings deposit, government fiscal balance, young age dependency rate, and old age dependency rate and also inflation rate as the potential determinants of saving. The results showed that per capita income, rate of returns, old age dependency and inflation rate are the determinants of national savings while per capita income, rate of returns, government fiscal balance, young age dependency, old age dependency and inflation rate are the determinants for private saving in a long run. In a short run we found that per capita income, government fiscal balance and young age dependency are the significant determinants of national saving in a short run while private saving determinants are found to be per capita income, rate of return and young age dependency. Furthermore, variable ECM which indicates the speed of adjustment shows that more than 75% of the adjustment is completed in a year for national saving determinants, while more than 86% of the adjustment is completed in a year for private saving determinants. Results obtained in this study suggest that policy makers should monitor all significant variables since they give impact on the savings rate.
format	Article
author	Hafizah Hammad Ahmad Khan, Hussin Abdullah,
spellingShingle	Hafizah Hammad Ahmad Khan, Hussin Abdullah, Saving determinants in Malaysia
author_facet	Hafizah Hammad Ahmad Khan, Hussin Abdullah,
author_sort	Hafizah Hammad Ahmad Khan,
title	Saving determinants in Malaysia
title_short	Saving determinants in Malaysia
title_full	Saving determinants in Malaysia
title_fullStr	Saving determinants in Malaysia
title_full_unstemmed	Saving determinants in Malaysia
title_sort	saving determinants in malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2010
url	http://journalarticle.ukm.my/3370/ http://journalarticle.ukm.my/3370/
first_indexed	2023-09-18T19:38:35Z
last_indexed	2023-09-18T19:38:35Z
_version_	1777405437741629440

Saving determinants in Malaysia

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