The determinants of private saving in India

Premachandra Athukorala; Kunal Sen

doi:10.1016/j.worlddev.2003.07.008

The determinants of private saving in India

Research output: Contribution to journal › Article

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 language	English
Pages (from-to)	491-503
Journal	World Development
Volume	32
Issue number	3
DOIs	https://doi.org/10.1016/j.worlddev.2003.07.008
Publication status	Published - 2004

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10.1016/j.worlddev.2003.07.008

http://hdl.handle.net/1885/40610

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title = "The determinants of private saving in India",

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.",

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AB - 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.

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DO - 10.1016/j.worlddev.2003.07.008

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EP - 503

JO - World Development

JF - World Development

SN - 1873-5991

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The determinants of private saving in India

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