This study analyzes the impact of age dependency on gross savings for the period of 1975 to 2018 by applying ARDL and Granger causality techniques. The findings of the study suggest that young-age dependency and old-age dependency have a negative impact on gross savings in the long run. Granger causality test reveals that the causality between age-dependency of young and gross savings is bidirectional while the causality between age-dependency of old and gross savings is unidirectional. The study is also equipped with policy implications.

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An Analysis of Age Dependency Burden and Saving Rates in Pakistan

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

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

Due to close relationship of savings to economic growth, poverty, income inequality the analysis of the savings behavior becomes very important in development economics. The present study has analyzed the saving behavior of Pakistan for the period 1973- 2013. It has been found that age dependency, foreign savings and inflation have a negative and significant relationships with all the three type of savings (i.e. national, public and private), while economic growth and financial sector development enhances savings in Pakistan. The study finds that interest rate has an insignificant impact on nationals and private savings. However, in the case of public savings the impact is positive and significant. As far as the role of taxes is concerned, it has been found that taxes discourage private savings while the impact on public savings is positive.

Muhammad Irfan Akram

Papers

Macro and socioeconomic determinants of savings in pakistan

Conflict analysis, learning from practice