Determinants of Private Savings in the Middle East and North Africa

This chapter investigates the relationship between private savings and a broad range of macroeconomic aggregates in the Middle East and North Africa (MENA) over the period 1981–1994. Private savings are explained by the growth rate of income and strong inertia. Public savings crowd out private savin...

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Published inMoney and Finance in the Middle East: Missed Oportunities or Future Prospects? Vol. 6; pp. 95 - 113
Main Authors Metin Özcan, Kıvılcım, Ziya Özcan, Yusuf
Format Book Chapter
LanguageEnglish
Published Emerald Group Publishing Limited 2005
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Summary:This chapter investigates the relationship between private savings and a broad range of macroeconomic aggregates in the Middle East and North Africa (MENA) over the period 1981–1994. Private savings are explained by the growth rate of income and strong inertia. Public savings crowd out private savings only partially. A financial depth measure suggests that countries with deeper financial systems will tend to have higher private savings. Private credit and real interest rates capture the severity of borrowing constraints and the degree of financial repression. Inflation captures the macroeconomic volatility and has a positive impact on savings.
ISBN:0762312165
9780762312160
ISSN:1094-5334
DOI:10.1016/S1094-5334(05)06005-X