scholarly journals Socio-economic Characteristics and Household Savings: An Analysis of the Households' Saving Behaviour in Pakistan

1992 ◽  
Vol 31 (1) ◽  
pp. 31-48 ◽  
Author(s):  
Nadeem A. Burney ◽  
Ashfaque H. Khan
Keyword(s):  
Economic Growth ◽  
Rural Households ◽  
Household Head ◽  
Ordinary Least Squares ◽  
Negative Influence ◽  
Resource Mobilization ◽  
Household Savings ◽  
General Belief ◽  
Savings Rate ◽  
Domestic Resource

Domestic resource mobilization is one of the key determinants of sustained economic growth. Pakistan's perfonnance with regard to domestic resource mobilization has been poor despite maintaining a respectable economic growth rate. Why is the savings rate so low in Pakistan? In this paper we analyse the household savings behaviour in Pakistan, using micro level data of the Household Income and Expenditure Survey (HIES) for the year 1984-85. Three different non-linear savings functions attributed to Keynes, Klein, and Landau are estimated separately for the urban and the rural households, using the Ordinary Least Squares (OLS) technique. It is found that the average income and saving of an urban household are considerably higher than those of overall Pakistan or a rural household. However, contrary to the general belief, it is found that the propensity to save of the rural households is much higher than that of their urban counterparts. The dependency ratio and the various categories of education are found to have a negative influence on household savings. No systematic relationship is found between savings and the employment status and occupation of the household head. It is found, however, that saving increases with age but tends to decline when the age crosses a certain limit - a finding consistent with the Life Cycle Hypothesis.

Sustainable Financing through Domestic Resource Mobilization (DRM)

2018 ◽  
pp. 514-535
Author(s):  
Francesco Seatzu
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Poverty Alleviation ◽  
Addis Ababa ◽  
Developed Countries ◽  
Resource Mobilization ◽  
Development Goals ◽  
The Relationship ◽  
Domestic Resource ◽  
Sustainable Financing

Domestic resource mobilization (DRM) has assumed increasing significance as a form of financing for sustainable development and economic growth in Africa. This chapter explores the present and future roles of international law concerning the regulation of this form of financing for sustainable development and economic growth in Africa, as well as the main obstacles and challenges of mobilising DRM in African developing and less developed countries. While there is a wide array of questions and issues related to this form of financing for development that international conferences and summits, in particular the Monterrey Consensus on Financing for Development and the Addis Ababa Agenda for Action, have addressed in various forms and with different emphasis and results, the chapter focuses exclusively on some substantial issues, such as the use of DRM for the financing of the new Sustainable Development Goals and the relationship between DRM and poverty alleviation actions and strategies.

scholarly journals Effect of Money Supply on Economic Growth: A Comparative Study of Nigeria and Ghana

2019 ◽  
Vol 7 (3) ◽  
pp. 16
Author(s):  
Cordelia Onyinyechi Omodero
Keyword(s):  
Economic Growth ◽  
Money Supply ◽  
Negative Impact ◽  
Ordinary Least Squares ◽  
Negative Influence ◽  
Positive Influence ◽  
Least Squares Regression ◽  
Monetary Authorities ◽  
Significant Negative Impact ◽  
The Impact

The effect of money supply in enhancing economic growth in Nigeria and Ghana is investigated in this study. The major objectives of the study are to establish the joint and individual influences of money supply mechanisms on economic growth in Nigeria and Ghana. The study employs data from 2009 to 2018 and uses Ordinary Least Squares regression technique for analysis of the data. The findings reveal that broad money supply (M2) has an insignificant negative influence on RGDP in Nigeria, but in Ghana the impact is significant and positive. Broad money supply (M3) exerts insignificant positive influence on RGDP in Nigeria, but significant negative impact on RGDP in Ghana while credit to private sectors (CPS) has insignificant positive influence on RGDP in both Nigeria and Ghana. The study among others suggests that the Monetary Authorities in the two countries should come up with monetary policy strategies that will help drive the economy better and such policies should consider M2 and CPS more as their contributions are necessary for economic expansion that lead to more output and employment.

scholarly journals Analyzing the contribution of crop diversification in improving household food security among wheat dominated rural households in Sinana District, Bale Zone, Ethiopia

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Dereje Derso Mengistu ◽  
Degefa Tolossa Degaga ◽  
Abraham Seyoum Tsehay
Keyword(s):  
Food Security ◽  
Informal Education ◽  
Multinomial Logistic Regression ◽  
Irrigation System ◽  
Rural Households ◽  
Household Head ◽  
Ordinary Least Squares ◽  
Household Food Security ◽  
Crop Diversification ◽  
Household Food

Abstract Background Agriculture is considered an important strategy for overcoming many of the emergencies faced by rural households in developing countries. In rural Ethiopia household access to food largely depends on what the household grows, either because they consume what they grow, or they purchase food with the income earned from what they grow. This study examines effect of crop diversification on food security and determinants of household food security among rural farm households of Sinana District, Oromia Regional state. The study uses a multi stage sampling procedure to select 384 sample households. Data were collected using a household survey, a focus group discussant (FGD), and key informant interviews. Ordinary least squares regression (OLS) and multinomial logistic regression model were used to analyze the data collected. Results We found that crop diversification had a positive and significant effect on household food security. Although crop diversification was positively associated with household food security, several other factors were found to be as or more important in increasing household food security. The education of the household head, access to irrigation system, livestock owned, total income, and remittance positively affected household food security. In contrast, age of household head and distance to nearest market were negatively associated with food security. Conclusions The study conclude that any effort to increase household food security should consider empowerment of farmers through adequate training and informal education, enhancing crop diversification, strengthening the rural infrastructural development (roads, market centers, and cooperatives).

scholarly journals Financial Repression , Financial Development and Structure of Savings in Pakistan

1988 ◽  
Vol 27 (4II) ◽  
pp. 701-713 ◽  
Author(s):  
Ashfaque H. Khan
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Low Income ◽  
Economic Performance ◽  
Gross National Product ◽  
Poor Performance ◽  
Resource Mobilization ◽  
Financial Repression ◽  
The Past ◽  
Domestic Resource

The mobilization of domestic resources is one of the key determinants of sustained economic growth. Improving domestic resource mobilization involves raising the level of national savings to enable a higher level of investment, hence a faster rate of economic growth. Pakistan's saving performance and its overall economic performance appear to be incongruous. Over the past several years, Pakistan has maintained an economic growth of more than 6 percent which is laudable, but her performance with regard to savings has been poor. In fact, saving as a fraction of the Gross National Product (GNP) is one of the lowest among the developing countries. The current saving rate of about 14 percent of GNP fares badly with 23 percent for other low-income developing countries. 1 What are the reasons for such a poor performance of savings in Pakistan? This paper attempts to provide some explanations for the causes of low savings in Pakistan.

Domestic financial liberalization and economic growth nexus: the role of corruption

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulhadi Aliyara Haruna ◽  
Abu Sufian Abu Bakar
Keyword(s):  
Economic Growth ◽  
Interaction Effect ◽  
Financial Liberalization ◽  
Policy Design ◽  
Ordinary Least Squares ◽  
Business Environment ◽  
Negative Influence ◽  
Cross Sectional ◽  
Content Type ◽  
Financial Deregulation

Purpose This study aims to examine the effect of domestic financial deregulation on economic growth in five selected sub-Saharan African nation (SSA). The paper also explored the interaction effect of domestic financial deregulation and corruption on growth. Design/methodology/approach The paper used Driscoll and Kraay standard errors based on the pooled ordinary least squares, which is robust to heteroskedasticity, cross-sectional dependence and autocorrelation. Findings The outcome indicates that domestic financial liberalization has accelerated growth in SSA economies. Similarly, evidence reveals that foreign direct investment and credit to the private sector by banks accelerate growth. However, evidence indicates that labour and capital negate growth. Also, the interaction term for domestic financial liberalization and corruption shows a negative influence on growth. The study, therefore, recommends that well-tailored policy design and strategy be implemented to provide a smooth and conducive business environment for investors. Originality/value Numerous studies have analysed the influence of financial deregulation on growth; however, none have examined the effects of domestic financial deregulation on growth in the context of SSA. Also, no studies have explored the interaction effect of domestic financial deregulation and corruption on growth.

Household’s Saving Behaviour in Pakistan: A Micro-Data Analysis

2021 ◽  
pp. 232102222110243
Author(s):  
Naeem Akram
Keyword(s):  
Labour Force ◽  
Rural Households ◽  
Household Head ◽  
Labour Force Participation ◽  
Household Savings ◽  
Urban Households ◽  
Dominant Component ◽  
The Impact ◽  
The Relationship ◽  
Family House

Savings play a very crucial role in the economic development of a country by financing investment needs. Household savings are the major and dominant component of national savings in Pakistan. The present study aims to analyse the impact of various socio-economic factors in determining the household savings in Pakistan by using the data of Household Integrated Income and Consumption Survey (HIICS) 2015–2016. It has been found that household’s savings tend to increase with income, living in nucleus family, house ownership, receiving remittances from abroad and being involved in agriculture; and saving tends to decrease with an increase in dependency ratio; and wealth has an insignificant role in determining savings in both urban and rural households. However, education and female labour force participation had a positive relationship with saving among urban households but the relationship is insignificant in rural households. Similarly, age of household head hurts saving in urban households and the relationship is insignificant in rural households. JEL Codes: E21, D91, C31

scholarly journals Tax Evasion and Its Consequences on an Emerging Economy: Nigeria as a Focus

2019 ◽  
Vol 10 (3) ◽  
pp. 127
Author(s):  
Cordelia Onyinyechi Omodero
Keyword(s):  
Economic Growth ◽  
Informal Economy ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Strong Relationship ◽  
Underground Economy ◽  
Ordinary Least Squares ◽  
Negative Influence ◽  
Multiple Regression Technique ◽  
The Government

There is a universal understanding that tax evasion is a product of underground economy, however, the two economic scenarios have dissimilar influences on an economy. The effects of tax evasion and underground economy have been examined in this study, in order to establish a statistical evidence of the varying consequences of the two economic circumstances. The study employs secondary form of data ranging from 1991 to 2018 while using ordinary least squares multiple regression technique for the analysis. The findings reveal that tax evasion has a robust significant negative influence on economic growth while underground economy is having a strong and positive significant impact on economic growth of Nigeria. The two independent variables are found to be having very strong relationship with economic growth and are also determining 98.7% of the variation in the Nominal Gross Domestic Product. In the light of these findings, it is obvious that informal economy and tax evasion have become an integral part of Nigeria’s economy doing both harm and good substantially. Therefore, the study recommends more effort on the part of the government to encourage good leadership, formulate policies that will enhance voluntary tax compliance and help the informal sector businesses that are legitimate to become officially registered with little or no cost.

Fiscal Deficit and Economic Growth in Bangladesh

2016 ◽  
Vol 62 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Ebney Ayaj Rana ◽  
Abu N. M. Wahid
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Negative Impact ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Government Budget ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

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