Determinants Of Savings In The Low And Middle Income Asian Countries

Savings rate in a country is the most important and sustainable propeller of economic growth and for structural transformation in developing countries. The Determinants of savings has been one of the most explored areas in economic research in terms of accessing the prospects of economic growth of a country. In this paper, we examined the determinants of savings in the low- and middle-income Asian countries. Panel data analysis is used for twenty-four countries for the duration of period 1991-2017. As per our analysis Income (GDP per capita), Taxes on income, Urban population and Gross fixed capital formation have a positive impact on domestic savings rate whereas Real interest rate and Trade have a negative impact in these countries. Age dependency ratio and Broad money are coming out to be insignificant in our study.