Impact of demographic factors and economic uncertainties on saving behavior

The global saving glut hypothesis points out that the aging population in industrial countries and uncertainty in developing countries has contributed to excess saving. However, this hypothesis has neglected the role of divergent demographic transitions on the saving rates. In addition, the predi...

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Main Author: Vong, Kian Sin
Format: Thesis
Language:English
Published: 2017
Subjects:
Online Access:http://psasir.upm.edu.my/id/eprint/89879/
http://psasir.upm.edu.my/id/eprint/89879/1/FEP%202019%2057%20ir.pdf
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author Vong, Kian Sin
author_facet Vong, Kian Sin
author_sort Vong, Kian Sin
building UPM Institutional Repository
collection Online Access
description The global saving glut hypothesis points out that the aging population in industrial countries and uncertainty in developing countries has contributed to excess saving. However, this hypothesis has neglected the role of divergent demographic transitions on the saving rates. In addition, the prediction of the aging population in industrial countries increase the saving rate is inconsistent with the life cycle saving hypothesis. Besides, this hypothesis does not suggest which type of uncertainty affect the saving rate. Therefore, this study examines the effect of demographics and various uncertainties on saving rate over the period 1999-2007. The results suggest that the dependency ratios are negative related to saving rate. Thus, the working-age population increase and saving rate would expect to increase. One important policy implication is saving rate trend is predicting to remain high at least in the short- and medium run as dependency ratios declining. Therefore, financial development suggested by the global saving glut hypothesis to reduce saving rate might not be effective. Meanwhile, the results of uncertainties imply that using a single measure of uncertainty to study the effect of uncertainty is inappropriate. One important policy implication is any intervention policy that attempts to mitigate uncertainty has to consider the different effect of uncertainties on the saving rate.
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spelling upm-898792021-12-06T07:04:13Z http://psasir.upm.edu.my/id/eprint/89879/ Impact of demographic factors and economic uncertainties on saving behavior Vong, Kian Sin The global saving glut hypothesis points out that the aging population in industrial countries and uncertainty in developing countries has contributed to excess saving. However, this hypothesis has neglected the role of divergent demographic transitions on the saving rates. In addition, the prediction of the aging population in industrial countries increase the saving rate is inconsistent with the life cycle saving hypothesis. Besides, this hypothesis does not suggest which type of uncertainty affect the saving rate. Therefore, this study examines the effect of demographics and various uncertainties on saving rate over the period 1999-2007. The results suggest that the dependency ratios are negative related to saving rate. Thus, the working-age population increase and saving rate would expect to increase. One important policy implication is saving rate trend is predicting to remain high at least in the short- and medium run as dependency ratios declining. Therefore, financial development suggested by the global saving glut hypothesis to reduce saving rate might not be effective. Meanwhile, the results of uncertainties imply that using a single measure of uncertainty to study the effect of uncertainty is inappropriate. One important policy implication is any intervention policy that attempts to mitigate uncertainty has to consider the different effect of uncertainties on the saving rate. 2017-10 Thesis NonPeerReviewed text en http://psasir.upm.edu.my/id/eprint/89879/1/FEP%202019%2057%20ir.pdf Vong, Kian Sin (2017) Impact of demographic factors and economic uncertainties on saving behavior. Masters thesis, Universiti Putra Malaysia. Saving and investment Country funds
spellingShingle Saving and investment
Country funds
Vong, Kian Sin
Impact of demographic factors and economic uncertainties on saving behavior
title Impact of demographic factors and economic uncertainties on saving behavior
title_full Impact of demographic factors and economic uncertainties on saving behavior
title_fullStr Impact of demographic factors and economic uncertainties on saving behavior
title_full_unstemmed Impact of demographic factors and economic uncertainties on saving behavior
title_short Impact of demographic factors and economic uncertainties on saving behavior
title_sort impact of demographic factors and economic uncertainties on saving behavior
topic Saving and investment
Country funds
url http://psasir.upm.edu.my/id/eprint/89879/
http://psasir.upm.edu.my/id/eprint/89879/1/FEP%202019%2057%20ir.pdf