Saving in Southeast Asia and Latin America Compared: Searching for Policy Lessons

IMF Working Papers, September 1, 1997

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Saving in Southeast Asia and Latin America Compared: Searching for Policy Lessons

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Bibliographic details

• Authors: Christian Thimann, Anuradha Dayal-Gulati
• Published: September 1, 1997
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451853308.001

Summary and key findings

• The paper examines empirical determinants of private saving for a sample of economies in Southeast Asia and Latin America over the period 1975–95.
• Panel estimations are used to establish relationships between private saving rates and a range of policy and nonpolicy variables.
• Findings:
  • Fiscal policy, particularly social security arrangements, influence private saving.
  • Macroeconomic stability appears to have been important in accounting for differences in saving behavior between the two regions.
  • Financial deepening also appears to have been important in accounting for differences in saving behavior between the two regions.

Methodology

• Empirical approach: panel estimations.
• Sample period: 1975–95.
• Focus variable: private saving rates.
• Explanatory variables: a range of policy and nonpolicy variables (including fiscal policy and social security arrangements, macroeconomic stability, and measures of financial deepening).

Policy implications and lessons

• Fiscal policy design, and in particular the structure of social security arrangements, can affect private saving behavior.
• Policies that enhance macroeconomic stability may support higher private saving rates.
• Financial deepening policies that expand and deepen financial markets may help increase private saving.

Subject coverage and keywords

• Subject: Econometric analysis, Estimation techniques, Expenditure, Financial markets, Financial sector development, Income, National accounts, Pension spending, Private savings, Terms of trade
• Keywords: A. saving trend, Estimation techniques, financial market, Financial sector development, GDP, government saving, Income, Latin America, Pension spending, Private savings, saving, saving behavior, saving motive, saving rate, saving scheme, Southeast Asia, WP

Content in this bundle

• Saving in Southeast Asia and Latin America Compared: Searching for Policy Lessons - WP/97/110
  • Saving in Southeast Asia and Latin America Compared: Searching for Policy Lessons - WP/97/110 (Markdown version)
  • Saving in Southeast Asia and Latin America Compared: Searching for Policy Lessons - WP/97/110 (PDF)