National Savings Research Articles

Converting Wealth into Capital: Bank Savings Accounts, National Savings Movement, and the Kumbara (1929-1938)

Converting Wealth into Capital: Bank Savings Accounts, National Savings Movement, and the Kumbara (1929-1938)

Impact of Exchange Rates on Returns in Share Market: A Case of Pakistan

The study focused on appraising the influence of exchange rates on returns in the share market: a case of Pakistan. Time-series data spanning 36 years (1980 to 2016) was utilized. To capture the impact of exchange rates on returns in the share market, a theory-based model consisting of six sub-models was planned and estimated through the recursive simultaneous-equations econometric estimation technique. As the data was time series, augmented Dickey-Fuller (ADF) tests were employed to assess the stationarity of the considered variables. The autoregressive distributed lag (ARDL) model was chosen due to some variables being found at different levels, such as me (0) and I (1). Bounds tests in the conclusion declared that the value of F-statistics expressed long-run associations among variables. The results revealed that share market returns were positively influenced by the exchange rate. The model also indicated that share market returns were significantly influenced by Foreign Portfolio Investment (FPI). Furthermore, National Savings (NS) demonstrated a positive and significant association with share market returns (SMR). The study's outcomes also illustrated that National Income (NI) had a positive and significant influence on SMR. The study encompassed well-expanded details and estimation techniques of various models and measures required in this type of research, especially when utilizing time-series data. Based on research findings, it was suggested that potential researchers reproduce this research to achieve a better and relatively well-conceived, well-estimated model on the topic. Additionally, it was recommended that public and private sector planners and researchers seek guidance not only on statistically significant exogenous variables but also on other explanatory variables for their effects on the endogenous variables.

Level of Education and Savings Mobilization among Women Groups in Kisii County, Kenya

Investments by firms ultimately benefit the nation through higher productivity and economic growth. The role of savings in investment and, therefore, in the development of a country cannot be exaggerated. In developing countries like Kenya, most of the savings are done by households. High savings can also hedge countries against economic downturns and financial crises. One of the avenues to boost national savings is by encouraging individuals to increase personal savings. In this study, the behavior of women savings in Voluntary Saving Groups, which are self-help women groups in Kisii county, was examined. The purpose of this study was to find out whether the level of education can influence savings mobilization among self-help women groups in Kisii County for economic growth in Kenya. The study was guided by psychological and sociological theories, which propose that an individual's changes in resources over time and the influence of education, among other factors, have an influence on savings. The study will be beneficial to groups on savings as well as policymakers who come up with regulations concerning savings through groups. The study used the descriptive survey design and the target population was 1,482 group members of the various self-help women groups in Kisii County, from which a sample of 165 was obtained. The study revealed that the level of education is a serious contributor to saving decisions among women in self-help groups, thereby influencing savings mobilization among themselves.

Stock Market Development and Economic Growth of Nepal

The development of Nepal’s stock market and economic growth are examined in this study since several factors, including stock market development, affect economic growth. The stock market development indicators are market capitalisation, trading turnover, NEPSE index, gross capital formation, and gross national savings. This research is based on secondary data (1995 to 2022) extracted from the Quarterly Economic Bulletin of Nepal Rastra Bank in mid-July 2023. The econometric methods such as the Johnson cointegration test, Granger causality test, and VAR model were used to assess the nexus between the stock market development and economic growth in Nepal. Long-term cointegration has been observed between the stock market development indicators such as gross national savings, market capitalisation, gross capital formation, trading turnover, stock market index, and economic growth. Likewise, economic growth and stock market development are shown to be causally related in a unidirectional manner by the Granger causality test. It concludes that stock market development matters for economic growth in the short and long run. The regulatory authority may adopt an appropriate policy for sustained growth of the stock market through (i) improving disclosure and transparency, (ii) enhancing investor awareness and education, (iii) safeguarding the interest of shareholders, (iv) diversifying the trading opportunities, and (v) maintaining the macroeconomic stability.

South Africa’s Savings and Economic Development Linkage: Causal Relationship Examination

South Africa dreams of eradicating poverty and achieving equitable distribution of its scarce resources among its citizens by 2030. Economic growth sustained over time is crucial in achieving its developmental goals. Domestic savings provide a cheap source of resources for investment that would sustain economic growth. This study explored the relationship between South Africa’s aggregate national savings and aggregate national income from 1987 to 2021. The study utilized Solow’s bivariate model and error correction-centered causality to ensure the robustness of the study results while testing the relationship between saving and economic growth. The study confirmed that aggregate national saving was positively related to South Africa’s economic growth. In the short run, deviations from the long-run paths were partly corrected in the present period. In addition, the study found aggregate national saving Granger caused short- and long-term economic growth. The general policy recommendation is that the Government of South Africa should remove bottlenecks to aggregate national saving mobilization efforts by implementing pro-saving fiscal and monetary policies. High saving rates will stimulate income growth through investments in productive sectors, reducing poverty and inequality.

The Dynamic Effect of Financial Sector Development in Stimulating the Gross National Savings of Djibouti

Abstract Savings are important determinants of wealth. At the macroeconomic level, governments attach importance to saving money in order to make new investments, produce new capital goods, and sustain economic growth. However, due to the high level of internal and external debt in Djibouti, it is nearly impossible for the country to achieve domestic savings. Hereby, the major aim of this study is to examine the dynamic effect of financial sector development in stimulating the gross national saving of Djibouti from the period 1987 to 2021. The paper considered numerous indicators as measurements of the financial sector development including FDI inflows, domestic loans to the private sector, central bank assets to GDP, and money supply. To proceed with the analysis, Non-Linear Autoregressive Distributed Lag (NARDL) was performed and according to the model, the findings highlighted that the Djiboutian financial industry is still in its early development and has not yet made a substantial contribution to boosting the country’s national savings. Nevertheless, the gross national saving of Djibouti was still positively prompted by significant components of the financial sector development, such as the positive shocks of FDI inflows and both the negative shocks of central bank assets and money supply. While both the positive and negative shocks of the credit offered to the private sector were uncovered to diminish the national savings in the long run. In conclusion, the current research will help governments and policymakers understand the best ways to use the financial sector to raise gross national savings. It will also present evidence of how to implement long-term initiatives that can lower public debt and encourage savings. Not to mention, the article provides information on the value of long-term investments.

Investigation of the South African Economy Performance: A Pre, During and Post Covid-19 Era Assessment

The COVID-19 brought disruptions and decline in the economic performance of many countries most especially countries that are less resilient to economic disruptions. Thus, the purpose of this study is to investigate the economic performance of South Africa before, during and after the COVID-19 periods. To measure the economic performance of the South Africa during these periods, secondary data was employed and grouped as follows: national income and prices, labour market, Savings and investment, fiscal position, money and credit, and balance of payments. The descriptive analysis, correlation analysis as well as Wilcoxon signed-rank test were carried out on the dataset using the Statistical Package for Social Science (SPSS) 2022 version. The results obtained indicated some improvements in certain economic indicators such as gross national savings, Gross Domestic Product (GDP), export and import growth as well as gross reserves during the COVID and post COVID periods. Nevertheless, the country witnessed a decline in performance of some economic indicators such as employment rate, public investment, public savings, unit labour rate, gross government debt, annual consumer price inflator, broad money, credit to private sector, current account balance and terms of trade for all the periods. The results further indicate a gradual improvement in the areas of private investment, revenue, expenditure and lending, overall, primary and structural balances after the COVID-19 era. The findings obtained in this study may assist the government, public and private sectors to make informed decisions to promote South Africa’s economic development and resilience.

PENGARUH STRESS TERHADAP PRODUKTIVITAS KARYAWAN DENGAN KECERDASAN EMOSIONAL SEBAGAI VARIABEL MODERASI DI KOPERASI TABUNGAN NASIONAL SINGARAJA (STUDI EKONOMI PSIKOLOGI DI KOPERASI TABUNGAN NASIONAL DI SINGARAJA)

The purpose of this research is to find out whether stress can affect employee productivityand whether emotional intelligence can moderate the effect of stress on employee productivity. Thisresearch approach uses a quantitative approach. The data collection technique used in this study was aquestionnaire with a measuring instrument in the form of a differential sematic scale where the selectedrespondents were all employees of the Singaraja National Savings and Loans Cooperative, namely asmany as 32 people. The data analysis technique used in this study is the structural equation model(SEM) based on Partial Least Square (PLS) version 3.0. The results of this study indicate that the effectof stress on employee work productivity shows no effect and is not significant, while emotionalintelligence is only a moderating predictor. For this reason, it is expected that all employees of theSingaraja Savings and Loans Cooperative are able to reduce stress levels by increasing emotionalintelligence to support work productivity levels at the Singaraja National Savings and LoansCooperative.

The Causal Relationship between Financial Development, Financial Globalization and National Savings in Pakistan

Financial globalization has a role in transmitting information within financial markets and helps in financial development. Additionally, financial globalization facilitates risk diversification alleviates the negative consequences of economic recessions, enabling nations to engage in international borrowing and lending activities, thus stabilizing income, consumption, investment and savings levels. This research study analyzes the causal nexus between financial development, financial Globalization and national savings in Pakistan. Co-integration test indicates co-integration vector henceforth, there is relationship between variables in the long run. The causal relation is determined through vector error correction mechanism and it is found that there is long run bidirectional causality between financial development, financial globalization and national savings in Pakistan. This study recommends that monetary authorities in Pakistan to encourage financial inclusion as the ratio of account holders in financial sector is very low. This will encourage documented economy and savings will be channelized to productive sectors. Likewise, financial development up gradation with par with international standards will not only encourage domestic savings but also help in financial globalization.

Palliative Care as a Component of High Value and Cost-Saving Care During Hospitalization for Metastatic Cancer

Randomized controlled trials have demonstrated that palliative care can improve both quality of life and survival for outpatients with advanced cancer, but there is limited population-based data on the value of inpatient palliative care. We assessed palliative care as a component of high-value care among a nationally representative sample of inpatients with metastatic cancer. We further identified care, patient, and hospital characteristics significantly associated with high costs. This study analyzed hospitalizations of patients ≥18 years with a primary diagnosis of metastatic cancer from the National Inpatient Sample (covering 97% of the U.S. population) from 2010-2019. We utilized multivariable mixed-effects logistic regression to assess medical services (receipt of palliative care, invasive medical ventilation [IMV], systemic therapy), patient demographics, and hospital characteristics that were associated with high charges billed to insurance and hospital costs. We utilized generalized linear mixed-effects models to determine cost savings associated with provision of palliative care. Among 397,691 hospitalizations from 2010 to 2019, the median charge per admission increased by 24.9%, from $44,904 in 2010 to $56,098 in 2019, while the median cost remained stable at $14,300. Receipt of inpatient palliative care was associated with significantly lower charges (Odds Ratio [OR], 0.62; 95% CI, 0.61-0.64; P <.001) and costs (OR, 0.59; 95% CI, 0.58-0.61; P<.001). Factors associated with high charges were receipt of invasive medical ventilation (P<.001) or systemic therapy (P<.001), Hispanic patients (P<.001), and young age (18-49 years, P<.001). For-profit hospitals were more likely to bill high charges (OR, 5.05; 95% CI, 4.78-5.33, P<.001) but less likely to incur high hospital costs (OR, 0.51; 95% CI, 0.48-0.54, P<.001) than public hospitals. In adjusted generalized linear mixed effects regression, palliative care provision was associated with a $1,293 (-13.4%, P<.001) reduction in costs per hospitalization compared to no palliative care, independent of receipt of invasive care and age. Significant interactions were observed between receipt of palliative care and patient age group (-9.6% for 18-49 years; -14.7% for ≥70 years), receipt of IMV (-6.4% for IMV receipt; -14.0% for no IMV), hospital ownership (-19.6% for for-profit; -10.5% for public), and year of hospitalization (-15.4% for 2010; -8.9% for 2019). Inpatient palliative care is associated with reduced hospital costs for patients with metastatic cancer, irrespective of age and receipt of aggressive interventions. Assuming inpatient palliative care receipt increases by 50%, we estimate $4,045,000 in annual national savings. Integration of inpatient palliative care may de-escalate costs incurred through low-value inpatient interventions.

Domestic Savings and International Capital Flows in the EU

This paper uses new statistical estimates to test for effects of economic integration in Europe on international capital mobility. In a world of perfect capital mobility, one should experience little or not statistically significant relationship between the amount of domestic savings and domestic investment. Alternatively, under less-than perfect capital international mobility, diverse portfolio preferences and country-specific transactions costs would create impediments for long-term capital flows. This would result in direct connection between any changes (increases) in domestic savings and domestic investment. According to empirical results of a similar empirical study by Feldstein and Horioka (1980) for developed countries (including some of current EU members included in this investigation), there were portfolio preferences and institutional rigidities, which resulted in almost equal corresponding differences in domestic investment rates driven by domestic savings rates among major industrial countries.&#x0D; The current study tests for capital mobility in the EU Member States (2010-2020) discussing compatibility of findings with previous evidence found in the literature (Feldstein and Horioka 1980). It also addresses the optimal national savings policy, tax incidence and concludes on capital formation in the EU.

Детерминанты обеспечения устойчивого развития развитых стран: количественная оценка

The discussion of issues related to sustainable development is broad and requires not only qualitative analysis, but also the use of modeling methods to assess the current situation in the global economy. So, in this article, the influence of factors resulting in the SDG implementation index was considered. The econometric analysis was carried out based on data for 2022 for developed countries. To construct a multiple regression, factors influencing the implementation of the SDGs were selected, namely the human capital development index and gross national savings. The results obtained during the study indicate a moderate influence of the factors under consideration, as well as the presence of other determinants of the implementation of the SDGs, such as the involvement of the private sector in the implementation of the SDGs; the presence of sustainable institutions capable of creating a favorable environment for sustainable development; investments in the "green economy" and CSR; the level of education and awareness of the UN program on sustainable development.

Empirical Testing of the Hypothesis on the Structure of the Function of Private Savings in Russia

The article deals with a topical issue of the discrepancies between savings and real investments in national economy. In the majority of theoretical models of contemporary neoclassical approach such nonequilibrium phenomena are of a purely temporary nature and a short term. However, the author having studied the data of twenty leading economies of the world shows that this discrepancy within the frameworks of capital formation is a rule for a long term but not an exception. The article presents the key findings of saving processes analysis in the Russian economy from 2000 to 2020 years based on the data of national statistics and the Bank of Russia. For research purposes the author introduces analytical categories — savings hoards, propensity to savings hoards and propensity to hoard. These very categories are put in the basis of the hypothesis on private national savings structure. Using post-Keynesian methodology and as a result of empirical analysis the author proves all the parts of the proposed hypothesis — gross private savings have sustained dependence from derived income; a part of savings is hoarded from consideration of “liquidity preference” and the share of such savings functionally depends on fluctuations in economic uncertainty (but not from economy’s absolute value); for Russian Federal subjects precautionary motive prevails over profit motive when allocating the savings base.

Determinants of external debt, export-import, FDI, exchange rate, to foreign exchange reserves through balance of payments as intervening variables

Foreign exchange reserves are interpreted as part of national savings and are a very important monetary indicator to show the strength or weakness of the country's economic fundamentals. Foreign exchange reserves is influenced by various factors, including; external debt, exports, imports, investment, and balance of payments. The purpose of this study is to analyze the determination (degree of influence) of factors of foreign debt, import exports, FDI, exchange rates, on foreign exchange reserves through and balance of payments (BOP). The research method used is a quantitative research method with secondary data types in the form of data series with a period of 12 years (2011-2022). The data analysis method used is path analysis. With the help of E-views software. The results of the analysis p there is a structure/path I obtained that the exchange rate variable has a real effect on the BOP (balance sheet), In the structure/path I it is obtained that the exchange rate variable has a real effect on the BOP. While simultaneously (together) it is known that the variables X1, X2, X3, X4, and X5 not significant effect on Y1 (balance of payments). The results of the structure/path II analysis found that the external debt variable had a real effect on the country's foreign exchange reserves, and simultaneously (together) it was known that the variables X1, X2, X3, X4, X5 and X6/Y1 had a real effect on Y2 (foreign exchange reserves). In addition, it was also found that the balance of payments /BOP variable as an intervening variable did not have a real effect on foreign exchange reserves.

Financial Intermediation and Economic Growth in Nigeria

The aim of this study is to examine the relationship between financial intermediation and economic growth in Nigeria. The study examined the Central Bank of Nigeria quarterly data from 1981Q1 to 2017Q4 with the E-views software package (version 9.0). The Vector Auto Regression (VAR) methodology was used to analyse the data, while Block Exogeneity Wald test was used to test the hypothesis. The specified models included stationarity tests, reduced form VAR estimate and structural analysis. The Augmented Dickey Fuller Test indicates that the study variables are stationary at first difference or I(1). The VAR roots plot in relation to unit circle indicates that our specified reduced form VAR models are stable. The Lagrange Multiplier (LM) diagnostic tests indicate that our specified VAR models are correctly specified. The results show that financial intermediation measures such as bank deposit, commercial bank loans to rural customers, commercial bank deposits from rural customers and gross national savings jointly have no causal effect on real GDP growth, but individually, only the effect of bank deposit ratio is significant. The study therefore recommends that the Central Bank of Nigeria should persuade deposit money banks to reduce the current interest rate margin by reducing the lending rate and increasing the deposit rates. This would significantly reduce the current high financial exclusion rate as cost of borrowing would decrease while the level of domestic savings would increase. Keywords: Financial Intermediation, Real Gross National Savings, Commercial Bank Deposit from Rural Customers, Commercial Bank Loan to Rural Customers, Bank Deposit and Economic Growth

Tax Planning in Personal Income Tax: A Systematic Literature Review

The systematic literature review analyses and synthesizes research conducted regarding personal income tax planning within the time period of 2012 to 2022, 30 articles were reviewed. The review discovered that most of the articles dwelled mostly on unincorporated businesses and their owners/entrepreneurs/sole proprietors/investors as well as those articles that discussed issues relating to tax authorities’ regulations on personal income tax. The articles reviewed, gave insights on issues relating to personal income tax planning of wealth transfers, such as inheritance and bequest; gifts and inta-vivos; deathbed planning, etc. Importantly, they provided insights into how unincorporated businesses and entrepreneurs can optimize their disposable income through good personal income tax planning. In addition to the above, it highlighted such financial instruments that were resorted to, the most by taxpayers, which made their personal income tax planning more effective. (life insurance policies are the most widely used tax-saving tool, followed by provident funds and tax-saving fixed deposits, loans for homes and schools, National Savings Certificates, unit-linked insurance plans, health insurance plans, and equity-linked savings schemes, Infrastructure Bonds, in that order); we also found out that government strategies that influenced tax planning in favour of the state include: cooperation, increased uncertainty, creation of models, and maintaining a friendly atmosphere to avoid aggressive tax planning and improve revenue. Finally, direction for future research was suggested.

The environmental influence of national savings in D-8 countries: Empirical evidence using an ARDL model.

Extensive theoretical and empirical evidence supports the crucial role of savings in driving a nation's economic growth and development. However, previous studies have not considered their potential environmental implications. This study aims to explore the influence of savings and remittances on the Developing-8 countries (D-8) from 1989 to 2019, using the panel autoregressive distributed (ARDL) model. The findings reveal that national savings and remittances, in the long run, help mitigate environmental degradation in the D-8 countries but energy use and population growth stimulate carbon dioxide (CO2) emissions. In contrast, economic growth does not significantly affect these countries' environmental quality in the long run. However, none of the explanatory variables have any significant relationship with CO2 emissions in the short run. Therefore, policymakers in the D-8 countries are strongly encouraged to prioritize the enhancement of national savings across the three economic agents to maximize the positive effects of savings on environmental quality. Government savings can be increased by reducing deficits and borrowings, while corporate savings can be encouraged by implementing investment tax credits and promoting research and development. Additionally, governments can embark on public enlightenment campaigns on financial education and provide incentives to encourage household savings.

Savings behavior among immigrants and their U.S.-born children: A test of the culture-transplant model

The economic impact of immigration involves the movement of more than just labor and capital. Under the culture-transplant model, immigrants carry from their birth countries distinctive values and behaviors that they transmit to their descendants in their new countries. This study tests the model by examining the savings disposition of immigrants and their U.S.-born children. It finds a robust link between individuals’ savings and the national savings rates of their ancestral countries. In a midrange estimate, a 1 percentage-point increase in ancestral-country savings rates is associated with a 1 percent increase in retirement savings among second-generation immigrants. These results suggest that savings behavior has a cultural basis that persists in the generation after migration.

Mức độ đóng góp của kiều hồi vào tăng trưởng kinh tế: Bằng chứng thực nghiệm từ khu vực ASEAN-6

Remittances play an important role in the economy, especially in developing countries, as the remittances help to increase the national savings and ease the dependence on foreign exchange reserves and balance of payments, while simultaneously contributing to poverty reduction in receiving nations and communities, increasing investment in health, education and business. However, remittances can also increase the severity of the brain drain phenomenom as well as erode the labor incentive of the remittance receiving families. Applying the fixed effects and random effects models on the dataset of 6 ASEAN economies (ASEAN- 6) over the period of 2000-2020, the research findings fail to reveal the positive impact of remittances on the economic growth of ASEAN-6 countries, implying that remittances to ASEAN-6 nations, with a relatively limited scale, may not be large enough to significantly drive the economic growth of ASEAN-6 countries. This empirical evidence calls for feasible solutions to boost the scale of remittances, enabling ASEAN-6 economies to benefit from remittances

DO GROSS NATIONAL SAVINGS AND GROSS CAPITAL FORMATION CONTRIBUTE TO OMAN’S ECONOMIC GROWTH? AN EMPIRICAL STUDY

The purpose is to examine the long-term relationship &amp; cointegration among gross domestic product (GDP), gross capital formation (GFC), and gross national savings (GNS) at the current price level in Oman. The study has taken secondary data from the last 10 years (2010–2021). The study design is longitudinal. The studies applied the correlogram test to check whether the series are stationary or not. and also, the Granger causality test to find the direction of the GDP, GFC, and GNS. This study further used the Eagle Granger residual-based cointegration test and DOLS approaches to identify the long-run cointegration between GDP and its independent variable. With the application of the correlogram test, it has been found that GDP and GFC are stationary at their current levels, whereas GNS is stationary at the first difference. The study reported that there is no significant relationship between saving, capital formation, and economic growth at current prices. However, the finding also that there is no long-run cointegration between GDP at current prices and GNS and GFC. As the study is based on the current price which affects nominal GDP, not real GDP. It has been suggested to increase the saving to achieve a constant growth rate.