Private Saving in India

Loayza, Norman; Shankar, Rashmi

doi:10.1093/wber/14.3.571

Cited by 40 publications

(44 citation statements)

References 21 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In a similar fashion, the mean monthly savings of workers with family size of both 4 and 5 members were found to be significantly higher than that of the household size of 6 and 7 members as indicated by the positive mean difference of monthly savings between them (p<0.01). Thus, the mean savings of small member families being significantly more than that of the large member family groups indicate that savings on an average follows a downward trend with increasing family size (Loayza and Shankar, 2000).…”

Section: Univariate F-test and Levene's Testmentioning

confidence: 96%

The Impact of Family Size on Savings and Consumption Expenditure of Industrial Workers: A Cross-Sectional Study

Kiran¹,

Dhawan²

2015

American Journal of Economics and Business Administration

View full text Add to dashboard Cite

The present study investigated and analysed the impact of family size on monthly savings and consumption expenditure of the industrial workers. The results showed that with increasing household size, savings not only dwindled in absolute terms but also in relative terms as witnessed by decreasing saving to income ratios. Conversely, the consumption to income ratios witnessed an increasing pattern, which is indicative of income being diverted away from savings with every addition to the family size. The MANOVA post hoc analyses revealed that the mean monthly savings of each of the higher family size group (more than 3 members) were observed to be significantly lower than the smallest family group (3 members), which is symptomatic of low propensity towards saving in context of the workers with higher family size. Though, the mean monthly consumption expenditure of family size of 4, 5 and 6 members was observed to be significantly higher than that of the largest family group (7 members), however its consumption income ratio was observed to be greater than that of all the lower family size groups. This is logically plausible as the workers having the largest family size were observed to have the lowest mean monthly income, thereby implying the presence of large number of economically inactive members in this group, which resulted in diversion of a large part of their income towards their consumption expenses. The results of the ANOVA regression analysis confirmed that family size has a significant positive impact on the consumption expenditure of the industrial workers. Further, the reduction of savings due to increased burden of the additional family member corroborated the proposed negative effect of family size on savings of the workers.

show abstract

Section: Univariate F-test and Levene's Testmentioning

confidence: 96%

The Impact of Family Size on Savings and Consumption Expenditure of Industrial Workers: A Cross-Sectional Study

Kiran¹,

Dhawan²

2015

American Journal of Economics and Business Administration

View full text Add to dashboard Cite

show abstract

“…Interest rates do not have any significant effect on Islamic bank deposits, as has been found by several researchers (see, for example, Tariq and Masih 2016;Kassim et al 2009;Sukmana and Kassim 2010;Hassan 2016). Others have found positive relations between bank savings and interest rates (see, for example, Solarin et al 2018;Loayza and Shankar 2000;Athukorala and Tsai 2003;Ojeaga et al 2016;Ostadi and Sarlak 2014;Eriemo 2014;Siaw and Lawer 2015;Mushtaq and Siddiqui 2017). In their findings, Mushtaq and Siddiqui (2017) concluded that interest rates, which are forbidden in Islam, have significant positive impacts on bank deposits in non-Muslim countries both in the long-term and short-term; however, in Muslim countries, because of the religious restriction on interest rates, both in the long-term and short-term, people do not care about increases or decreases in interest rates while depositing money in banks.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Other related macroeconomic factors that influence bank savings and deposits, such as inflation, gross domestic product (GDP), and the money supply variable role, have been addressed in several studies. Inflation was found to have a negative effect on bank savings (see, e.g., Loayza and Shankar 2000;Athukorala and Tsai 2003;Ostadi and Sarlak 2014;Siaw and Lawer 2015;Akhtar et al 2011). Moreover, Loayza and Shankar (2000) revealed that the income per capita and the share of agriculture in GDP have positive effects on savings, while financial development and the dependency ratio have negative effects on saving in India.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Inflation was found to have a negative effect on bank savings (see, e.g., Loayza and Shankar 2000;Athukorala and Tsai 2003;Ostadi and Sarlak 2014;Siaw and Lawer 2015;Akhtar et al 2011). Moreover, Loayza and Shankar (2000) revealed that the income per capita and the share of agriculture in GDP have positive effects on savings, while financial development and the dependency ratio have negative effects on saving in India. The money supply effect was found by Haron and Azmi (2008) and Ostadi and Sarlak (2014).…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Macroeconomic Determinants of Islamic Banking Products in Indonesia

Setyowati

2019

Economies

View full text Add to dashboard Cite

The purpose of the study was to investigate which factors determine saving and financing in Islamic banks in Indonesia by using Gregory–Hansen cointegration, vector error correction mode (VECM), Granger causality, and the impulse response function. The results disclose the existence of a long-running cointegrating relationship with a structural break in the deposit and financing case to the consumer price index, industrial production, interest rate, exchange rate, and Jakarta Islamic Index. Most of the structural breaks appeared in January 2006 and April 2007 for both deposit and financing, revealing the first stage of the financial crisis. Any short-term deviation between deposit and financing will give rise to a stable relationship in the long term. In the short-term, there is bidirectional causality between deposits and industrial production and between the consumer price index and financing. This finding shows that real activity, as measured by industrial production, is a highly determinant factor of Islamic bank deposits, while inflation, as measured by the customer price index, is the determinant factor of Islamic bank financing. Our results also suggest that a mix of dynamic behaviors from both Islamic bank savings and financing was revealed in response to the shock of the macroeconomic variable, giving better insight for the government and stakeholders into Indonesian Islamic banking.

show abstract

“…Literature from developed countries consistently displays a negative correlation between family size and household savings. Studies by Browning and Lusardi (1996), Loayza & Shankar (2000), and Gardiol (2004) and Orbeta (2006) point out that large family sizes have lower household savings. Conversely, in developing countries, the intergenerational links of large families are particularly strong, which lengthen the effective planning horizon of households (Gersovitz1988) and reduce the need for savings for retirement or for intergenerational transfers (Deaton, 1991).…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Savings Rate in Rural Nigeria: A Micro Study of Kwara State

Obayelu¹

2018

Journal for the Advancement of Developing Economies

View full text Add to dashboard Cite

The inability of households to save over time has significant influence on the rate of capital accumulation and economic growth in developing countries. In order to understand this trend, this research assesses savings rates and its correlates in rural Kwara state, Nigeria. A multi-stage sampling procedure was used to obtain data from 120 households. This was then analyzed using two descriptive statistics: the generalized linear model and the Tobit regression model. Results show that majority of the rural households were male-headed (81.0 percent) and combined farming with other non-farming activities (73.5 percent). The Tobit regression model reveals that age squared (p<0.10), farming experience (p<0.10) and diversification of non-farming activities (p<0.05) positively influence rural saving rates.

show abstract

Private Saving in India

Cited by 40 publications

References 21 publications

The Impact of Family Size on Savings and Consumption Expenditure of Industrial Workers: A Cross-Sectional Study

The Impact of Family Size on Savings and Consumption Expenditure of Industrial Workers: A Cross-Sectional Study

Macroeconomic Determinants of Islamic Banking Products in Indonesia

Determinants of Savings Rate in Rural Nigeria: A Micro Study of Kwara State

Contact Info

Product

Resources

About