Determinants of Domestic savings in Malaysia, Philippines and Singapore (ASEAN 3), 1980-2012

Date

4-2014

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Rowena A. Dorado

Abstract

Domestic savings is a tool for countries to attain a more sustainable economic growth through accumulating domestic investment which reduces country?s reliance on foreign finance or capital that makes them vulnerable to crisis. The main objective of this study is to investigate the determinants of the domestic savings in Malaysia, Philippines and Singapore (the ASEAN 3) by considering some macroeconomic factors such as Gross Domestic Product (GDP) growth rate and demographics. Results of the study show that income growth is positively related to domestic savings which indicates that virtuous cycle works for the ASEAN 3. Precautionary motive for savings is also found to be evident. This suggests that more uncertain the economy is, these countries tend to save more. Moreover, the presence of the dependents also reduces the domestic savings which is explained by the traditional family structure that still holds in these countries. Interestingly, interest rate is found to be insignificant. Causality of growth and savings may provide new direction for the next researches and studies.

Language

English

Location

UPLB Main Library Special Collections Section (USCS)

Call Number

LG 993.5 2014 E2 /A23

Document Type

Thesis

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