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:	Saving and investment Country funds
Online Access:	http://psasir.upm.edu.my/id/eprint/89879/1/FEP%202019%2057%20ir.pdf
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id	my-upm-ir.89879
record_format	uketd_dc
spelling	my-upm-ir.898792021-12-06T07:04:13Z Impact of demographic factors and economic uncertainties on saving behavior 2017-10 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. Saving and investment Country funds 2017-10 Thesis http://psasir.upm.edu.my/id/eprint/89879/ http://psasir.upm.edu.my/id/eprint/89879/1/FEP%202019%2057%20ir.pdf text en public masters Universiti Putra Malaysia Saving and investment Country funds Mohd Ali, Ly Slesman @ Sulaiman
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
advisor	Mohd Ali, Ly Slesman @ Sulaiman
topic	Saving and investment Country funds
spellingShingle	Saving and investment Country funds Vong, Kian Sin Impact of demographic factors and economic uncertainties on saving behavior
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.
format	Thesis
qualification_level	Master's degree
author	Vong, Kian Sin
author_facet	Vong, Kian Sin
author_sort	Vong, Kian Sin
title	Impact of demographic factors and economic uncertainties on saving behavior
title_short	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_sort	impact of demographic factors and economic uncertainties on saving behavior
granting_institution	Universiti Putra Malaysia
publishDate	2017
url	http://psasir.upm.edu.my/id/eprint/89879/1/FEP%202019%2057%20ir.pdf
_version_	1747813587865305088

Impact of demographic factors and economic uncertainties on saving behavior

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