The determinants of private saving in India

    Research output: Contribution to journalArticle

    Abstract

    This paper examines the determinants of private saving in the process of economic development, in the light of the Indian experience. It is found that the saving rate rises with both the level and the rate of growth of disposable income. The real interest rate on bank deposits has a significant positive impact, but the magnitude of the impact is modest. Public saving seems to crowd out private saving, but less than proportionately. Furthermore, the spread of banking facilities in the economy and the inflation rate have a positive impact and changes in the external terms of trade a negative impact on private saving.
    Original languageEnglish
    Pages (from-to)491-503
    JournalWorld Development
    Volume32
    Issue number3
    DOIs
    Publication statusPublished - 2004

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