AN EMPIRICAL ANALYSIS OF DETERMINANTS OF SAVING IN TURKEY
TÜRKİYE’DE TASARRUFLARIN BELİRLEYİCİLERİNİN AMPİRİK ANALİZİ

Author : Dilek ŞAHİN
Number of pages : 109-119

Abstract

Saving plays important role in economic growth and development of a country. National savings consist of three components as corporate, household and goverment savings. This study analyzes the determinants of saving in Turkey over a period of 1975-2014 by examining the empirical relationship among the gross domestic saving, deposit interest rate, inflation, urban population growth and GDP per capita growth. Autoregressive Distributed Lag (ARDL) approach has been applied to test determinants of gross domestic saving. The long run estimated results reveals that deposit interets rate has positive and significant relationship with gross domestic saving in Turkey. Urban population growth and GDP per capita growth has positive and insignificant relationship with gross domestic saving. Inflation rate has negative and insignificant relationship with gross domestic saving. The short run results show that deposit interest rate, urban population growth and inflation has positive and significant relationship with gross domestic saving. GDP per capita growth has positive and insignificant relationship with gross domestic saving in Turkey. Estimated lagged error correction term (ECM-1) is negative and statistically significant.

Keywords

Saving, Absolute Income Hypothesis, Permanent Income Hypothesis, The Life-Cycle Hypothesis, ARDL Bou

Read: 1,211

Download: 421