Savings Rate Research Articles

Extension and Revision of Monetary Policy Transmission Mechanisms and Domestic Real Investment in Nigeria: A Time Series Study Between 1981-2015 by Lucky Anyike Lucky & Uzah Cheta Kingsley.

The study by Lucky Anyike and Uzah Cheta Kingsley examines the impact of monetary policy on domestic real investment in Nigeria, using Gross Fixed Capital Formation to Gross Domestic Product ratio as a proxy for domestic real investment. The study uses various independent variables, including the maximum lending rate, credit to private sector as a percentage of GDP, naira to US dollar exchange rate, savings rate, monetary policy rate, prime lending rate, and Treasury bill rate. The authors conclude that monetary policy has a significant effect on the domestic real investment rate. The extension of this paper examines the impact of both monetary and fiscal policy on domestic real investment in Nigeria, while also considering the influence of political biases and the fact that a significant portion of fiscal policy spending may be allocated to current expenditures rather than capital expenditures. While mainstream economic theory suggests that fiscal policy should have a positive effect on real investment rate, this theory may be challenged in Nigeria due to the specific context and allocation of fiscal resources. We also examine the effect of monetary policy on domestic real investment rate in Nigeria by incorporating additional variables in our analysis.

Optimization Control of Multi-Mode Coupling All-Wheel Drive System for Hybrid Vehicle

The all-wheel drive (AWD) hybrid system is a research focus on high-performance new energy vehicles that can meet the demands of dynamic performance and passing ability. Simultaneous optimization of the power and economy of hybrid vehicles becomes an issue. A unique multi-mode coupling (MMC) AWD hybrid system is presented to realize the distributed and centralized driving of the front and rear axles to achieve vectored distribution and full utilization of the system power between the axles of vehicles. Based on the parameters of the benchmarking model of a hybrid vehicle, the best model-predictive control-based energy management strategy is proposed. First, the drive system model was built after the analysis of the MMC-AWD's drive modes. Next, three fundamental strategies were established to address power distribution adjustment and battery SOC maintenance when the SOC changed, which was followed by the design of a road driving force observer. Then, the energy consumption rate in the average time domain was processed before designing the minimum fuel consumption controller based on the equivalent fuel consumption coefficient. Finally, the advantage of the MMC-AWD was confirmed by comparison with the dynamic performance and economy of the BYD Song PLUS DMI-AWD. The findings indicate that, in comparison to the comparative hybrid system at road adhesion coefficients of 0.8 and 0.6, the MMC-AWD's capacity to accelerate increases by 5.26% and 7.92%, respectively. When the road adhesion coefficient is 0.8, 0.6, and 0.4, the maximum climbing ability increases by 14.22%, 12.88%, and 4.55%, respectively. As a result, the dynamic performance is greatly enhanced, and the fuel savings rate per 100 km of mileage reaches 12.06%, which is also very economical. The proposed control strategies for the new hybrid AWD vehicle can optimize the power and economy simultaneously.

The impact of the investment expectation gap on households’ risky financial asset investment

Rational household asset allocation is crucial for the accumulation of household wealth. However, there is still a widespread phenomenon of limited participation among households. This paper aims to explore the impact of the investment expectation gap on households’ risky financial asset investment. Utilizing data from the China Household Finance Survey 2019, this paper systematically investigates the role of the investment expectation gap in risky financial asset investment through the Probit and Tobit models. The study reveals that the investment expectation gap has a significant negative impact on the investment probability (Average Marginal Effect, –0.118, p < 0.01) and holding proportion (β, –0.082, p < 0.01) of household investment in risky financial assets. This conclusion remains robust after conducting robustness tests by replacing the explanatory variable and performing subsample tests and endogenous treatment. The analysis of transmission mechanisms revealed that an expanding of the investment expectation gap would concurrently result in a decline in households’ assessment of stock’s profitability (Average Marginal Effect, –0.080, p < 0.01), the satisfaction with current asset allocation (β, –0.167, p < 0.05), and the subjective well-being of household members (β, –0.289, p < 0.01). Furthermore, the investment expectation gap not only hampers household investment in risky financial asset, but also diminish the household savings rate (β, –0.055, p < 0.01). This study demonstrates that helping households form reasonable expectations for risky financial assets investment returns will contribute to diversifying household asset allocation and enhancing satisfaction with investment decisions. AcknowledgmentThis study is funded by the Chongqing Social Science Planning Fund, grant number (2021BS052).

Evaluation Research on Energy-Saving Retrofitting of Roofs of Traditional Wood-Structured Dwellings Based on the Continuation of Historical Features: A Case Study of Guangdu Village No. 280 Dwelling in Zhejiang

China has numerous traditional wooden dwellings located in regions with hot summers and cold winters. The historic dwellings lack proper thermal insulation and have excessive energy consumption in the building structure, failing to suit the needs of modern people. Hence, it is crucial to enhance their energy efficiency through essential actions. Roofs, being the fifth side of the building envelope, are frequently neglected when it comes to enhancing their insulating capabilities. The study aimed to implement energy-efficient roof alterations while preserving the historical features of traditional structures. This study focuses on enhancing the energy efficiency of a traditional wood-structured dwelling in Guangdu Village, Zhejiang Province, China, by installing composite thermal insulation panels on the interior of the roof using an easy restoration approach. The actual risk of condensation and the impact of retrofit processes on historical features determine the choice and limitations of energy-saving retrofit materials and methods. This study evaluates the transformation using two indicators: energy efficiency and economic feasibility. The numerical simulation results indicate that traditional dwellings have an annual energy savings rate of 16.66% and an investment payback period of 7.25 years. This study demonstrates the feasibility of energy-saving roof renovation measures for these traditional wood-structured dwellings. The measures improve energy efficiency and are affordable for residents. This study can offer technical suggestions for enhancing the energy efficiency of traditional wood-structured dwellings.

Green bonds and sustainable development: theoretical model and empirical evidence from Europe

ABSTRACT As a novel financial instrument, green bonds require further research to understand their causal effects and theoretical mechanisms on sustainable development fully. This paper constructs a theoretical model that characterizes the issuance of green bonds as the extent to which social planners prioritize environmental benefits in bond markets. In this model, we define sustainable development as the geometric mean of environmental factor inputs and final production output. By maximizing consumer utility, this model elucidates the direct and non-linear relationship between green bonds and sustainable development. The paper empirically investigates this proposition using data from 19 European countries between 2018 and 2022. The results indicate that: (1) Green bonds significantly promote sustainable development. This financial instrument, designed to raise funds for environmental projects, can indeed promote sustainable development through clean and green resource allocation. (2) The promotional effect of green bonds on sustainable development increases significantly with improvements in innovation efficiency, industrialization rates, and savings rates. This finding elaborates on the conditions under which the positive impact of green bonds on sustainable development is enhanced. (3) Green bonds only promote sustainable development when a country’s factor endowment structure reaches a specific threshold. Beyond this threshold, as the factor endowment structure becomes very high, the country’s sustainable development gains sufficient momentum, diminishing the role of green bonds. This finding suggests that the positive impact of green bonds on sustainable development is contingent upon certain properties reflecting the economic basis.

Urban-Rural Health Insurance Integration and China's Rural Household Savings.

A linchpin to realizing the internal circulation (referring to the domestic cycle of production, distribution and consumption) is reducing residents' saving rate and expanding the domestic needs. However, rural residents in China demonstrate a strong propensity to save money. In light of practical characteristics of urban-rural health integration promoted in different places, the three-phase data (from 2014 to 2018) and the dual difference-in-differences model of the China Labor-force Dynamics Survey (CLDS) are used to empirically investigate the impact of urban-rural health insurance integration on rural household savings. Research reveals that urban-rural health integration can reduce the health risks and medical risks facing rural households, thus weakening the motivation of precautionary savings. The analysis of heterogeneity reveals that the integration of urban-rural health insurance significantly influences the savings rates of households headed by older individuals, particularly women, with lower levels of educational attainment. Besides, the single-tier health insurance system can have a more significant impact, whereas the multi-tier insurance system may not significantly affect the savings rate. Based on the aforesaid research conclusions, this article believes that in order to reduce the savings rate of rural households and expand consumption, the health insurance system should be further improved.

The Influence of Public Debt on Defence Spending in Malaysia

This study investigates the dynamic relationship between Public Debt and Defence Spending in Malaysia, utilizing data spanning from 1991 to 2021 sourced from the World Bank. Employing the Fully Modified Ordinary Least Square (FMOLS) model, the analysis integrates Gross Domestic Saving and Exchange Rate as control variables to comprehensively explore the intricate nexus between these factors. The results reveal a robust positive association between Public Debt and Defence Spending, substantiated by the significant coefficient of 0.7601 (p < 0.01). This suggests that an increase in Public Debt corresponds to a substantial rise in Defence Spending. Additionally, the study underscores the influence of Gross Domestic Saving and Exchange Rate on Defence Spending, with coefficients of 1.5996 (p < 0.01) and 0.4703 (p < 0.05), respectively. These findings contribute valuable insights into the fiscal dynamics of Malaysia's defence budget, shedding light on the interplay between Public Debt and strategic resource allocation. The incorporation of control variables enhances the robustness of the analysis, providing a nuanced understanding of the factors shaping defence spending in the Malaysian context.

Extension and Revision of Monetary Policy Transmission Mechanisms and Domestic Real Investment in Nigeria: A Time Series Study Between 1981-2015 by Lucky Anyike Lucky & Uzah Cheta Kingsley

The study by Lucky Anyike and Uzah Cheta Kingsley examines the impact of monetary policy on domestic real investment in Nigeria, using Gross Fixed Capital Formation to Gross Domestic Product ratio as a proxy for domestic real investment. The study uses various independent variables, including the maximum lending rate, credit to private sector as a percentage of GDP, naira to US dollar exchange rate, savings rate, monetary policy rate, prime lending rate, and Treasury bill rate. The authors conclude that monetary policy has a significant effect on the domestic real investment rate. The extension of this paper examines the impact of both monetary and fiscal policy on domestic real investment in Nigeria, while also considering the influence of political biases and the fact that a significant portion of fiscal policy spending may be allocated to current expenditures rather than capital expenditures. While mainstream economic theory suggests that fiscal policy should have a positive effect on real investment rate, this theory may be challenged in Nigeria due to the specific context and allocation of fiscal resources. We also examine the effect of monetary policy on domestic real investment rate in Nigeria by incorporating additional variables in our analysis.

EXPLORING INDIA’S ECONOMIC SCENARIO THROUGH THE LENS OF FELDSTEIN HORIOKA PUZZLE

The Feldstein Horioka Puzzle has been a subject of extensive research, with various studies offering conflicting perspectives on its validity. The puzzle focuses on the relationship between saving and investment and whether the relationship holds true at the national level. The puzzle pertains to the persistent correlation between savings and investment, implying that countries with higher savings rates should also exhibit higher investment rates, in opposition to what conventional economic models predict. In the case of India, the Feldstein Horioka Puzzle has yielded diverse conclusions. Annual data from 1970 to 2021 has been used in the study to examine the validity of the Feldstein Horioka Puzzle in India. To confirm the long-term association between saving and investment, it is crucial to consider the cointegration test results. The results of the study KEYWORDS: Feldstein-Horioka Puzzle, saving, investment, fixed exchange rate, cointegration

Extension and Revision of Monetary Policy Transmission Mechanisms and Their Impact on Domestic Real Investment in Nigeria: A Time Series Study from 1981 to 2015 by Lucky Anyike and Uzah Cheta Kingsley

The study by Lucky Anyike and Uzah Cheta Kingsley examines the impact of monetary policy on domestic real investment in Nigeria, using the Gross Fixed Capital Formation to Gross Domestic Product ratio as a proxy for domestic real investment. The study uses various independent variables, including the maximum lending rate, credit to the private sector as a percentage of GDP, the naira to US dollar exchange rate, the savings rate, the monetary policy rate, the prime lending rate, and the Treasury bill rate. The authors conclude that monetary policy has a significant effect on the domestic real investment rate. The extension of this paper includes an examination of the impact of fiscal policy on domestic real investment in Nigeria, while also considering the influence of political biases and the fact that a significant portion of fiscal policy spending may be allocated to current expenditures rather than capital expenditures. While mainstream economic theory suggests that fiscal policy should have a positive effect on the real investment rate, this theory may be challenged in Nigeria due to the specific context and allocation of fiscal resources. We also examine the effect of monetary policy on the domestic real investment rate in Nigeria by incorporating additional variables in our analysis.

Savings Mobilization Efforts of the Nigerian Money Market and Economic Growth

Economic growth is a function of some productive efforts among which savings mobilizations is considered very vital. This study examined saving mobilization efforts of the Nigerian money market and the effects on economic growth during the year 2001 – 2022.Vested with the objectives to investigate the effect of banking density, savings rates and money supply on economic growth. The study relied on time series data sourced from the publication of the Central Bank of Nigeria. Gross Domestic Product Growth Rate (GDPGR) was adopted as dependent variable, while Banking Density (BD), Savings Rates (SR) and Money Supply (MS) were the independent variables. Augmented Dickey Fuller (ADF) unit root test was employed, to test the stationarity. The Auto Regressive Distributive Lag (ADRL) was used to ascertain the relationship between the variables alongside Vector Error Correction Model (VCM). Post estimation diagnostic tools used include; Breuch-Godfrey serial correlation LM test and the CUSUM test for stability. From the ARDL, β-coefficient and the associated probabilities were adopted to determine the extent and direction of relationship on economic growth. Data were tested at 5% level of significance, it was discovered that banking density and savings rates affected economic growth positively but with insignificant effects, while money supply affected economic growth negatively with insignificant effect. The study therefore recommends amongst other, that stakeholders, be directed towards entrenching higher banking density as opposed to banking desert, and that money supply should be made dynamic in accordance with economic realities.

The Impact of the Education Factor on Household Saving

Many factors influence the formation of consumer habits, one of the key qualitative variables being the education factor. The article examines the influence of the mentioned factor, both on the example of Georgia for different groups of income levels, and on the basis of comparative analysis between countries. The method of regression analysis is used as a research method. In particular, on the example of Georgia, the two-stage regression model is used. In the first stage, the savings factor is filtered from the influence of other factors. The second models are built for between the residual variable of the first stage equation and the education variable. The panel regression model with fixed period effects and period-weighted parameters is used for comparative analysis between countries. The models built on the example of Georgia do not unambiguously show the importance of the education factor in relation to the variation of the savings rate. In addition, on the studied 12-year time horizon, which is a short-term period for revealing the relationship between the mentioned factors, the education factor shows an inversely proportional impact on the savings rate. A cross-country panel model better identifies long-term factors and shows that increasing years of schooling increases the savings rate. Thus, the research shows that the education factor significantly improves financial decision-making abilities. Increasing choice in financial decisions is an important indicator of economic sustainability. Keywords: savings rate, education, gross national income.

Determinants of the personal savings rate in the Kingdom of Saudi Arabia using time savings deposits, 2012–2022

Personal saving is an important indicator of future economic prosperity. Despite the growth in gross domestic product per capita (GDPPC) from 2012 to 2022 in the Kingdom of Saudi Arabia (KSA), the personal savings rate remains low. Only a few studies have explored savings in KSA, but no study that used time savings deposits (TSD) to measure personal savings exists. Thus, this study aims to investigate the determinants of personal savings employing TSD. Using data from the Saudi Central Bank from 2012 to 2022, this study empirically examines the determinants of TSD. The autoregressive distributed lag cointegration technique determines the long-run relationship between the study's variables. The study finds that GDPPC, deposit interest rates (DIR), consumer loans (CLs), and real estate loans (RELs) significantly impact personal savings. Only GDPPC and RELs have a significant negative impact on personal savings. The study is among the few to examine savings in KSA but, unlike other studies, used TSD as a measure of personal savings. In conclusion, several implications and recommendations for policymakers and financial institutions were presented.

Aging Population’s Effect on Economic Output

This study investigates the economic implications of demographic aging, a phenomenon increasingly prevalent in both developed and developing countries. Utilizing the Solow-Swan model as the foundational framework for analysis, the research conclusively demonstrates that an increase in the proportion of the elderly population directly correlates with a measurable decline in aggregate economic output. This downturn is primarily attributed to escalating healthcare and pension expenditures, coupled with a diminishing labor force. The paper also conducts a rigorous evaluation of various policy interventions designed to alleviate these economic challenges. While the research explores options such as boosting birth rates, fostering technological advancements, and increasing savings rate, the study ultimately advocates for a more immediate and practical approach: the reintegration of the elderly into the labor market. Not only does this strategy sustains economic productivity, but it also capitalizes on the invaluable experience possessed by older workers. This research serves as an exhaustive resource for policymakers and scholars interested in the economic dimensions of demographic transitions.

How do Environmental Quality and Technology Affect Public Debt in Indonesia? A Time Series Analysis

In recent years, Indonesia has grappled with a notable surge in public debt, underscoring the urgency of prudent fiscal management. This study employs the Autoregressive Distributed Lag (ARDL) method to investigate the long-term connections between key variables, including gross domestic product, gross domestic investment, gross domestic savings, carbon emissions, and technology, using data from 1990 to 2020. Our findings reveal a significant and negative association between savings and environmental degradation with Indonesia's public debt. These insights bear substantial policy implications, emphasizing the importance of integrating environmental considerations into economic planning and suggesting that the banking sector could enhance fiscal stability by incentivizing increased savings rates. This study provides valuable guidance for policymakers and economists seeking to foster Indonesia's economic resilience in the face of mounting public debt.

Convergence of Inequality Dimensions in China: Income, Consumption, and Wealth from 1988 to 2018

AbstractUsing household data from 1988 to 2018, we confirm that the increase in income inequality in China has come to a halt in recent years but show that inequality in wealth and consumption continues to increase. We report a clear convergence of inequality across the different dimensions of income, consumption, and wealth. Households at the top of one dimension are increasingly located at the top of the other two dimensions. The mechanisms for such convergence across dimensions are analyzed. The savings rate links income and consumption, while capital accumulation is the central mechanism linking income and wealth. In addition, the wealth and income structure contribute to intensifying the convergence trend. We argue that the relatively high level of inequality in China may continue since income, consumption and wealth are increasingly reinforcing each other.

Neophodan nivo investicija za ubrzani privredni rast - stilizovane činjenice i politike

To close the gap in economic development relative to the EU average, Serbian economy has to achieve significantly higher growth rates in comparison to other European countries over the longer period. Theoretical and empirical literature indicates that the level of investment in physical capital is one of the key determinants of the dynamics of economic growth. In this paper, based on data on investments and savings in Serbia and in 37 countries that in the previous three decades achieved an average GDP growth rate of over 5% per year (so-called fast-growing economies - FGE), we present and analyze relevant stylized facts. In the observed period, FGE had average total investments of 25.6% of GDP, of which 69% was private and 31% public investments, whereby private investments were predominantly domestic, which is associated with a high rate of gross domestic savings (of 27.4% of GDP). On the other hand, total investments in Serbia were 9.7% of GDP lower than the FGE average, which was a consequence of significantly lower public and domestic private investments, which was, among other things, a consequence of significantly lower domestic savings (by over 20% of GDP). As in the recent period there has been a noticeable increase in public investments in Serbia, in order to accelerate economic growth, it is necessary, in addition to maintaining them at a high level, to encourage a considerable increase in domestic private investments through economic measures policy and wider reforms of the general institutional environment, with the aim of having the total level of investments of over 25% of GDP over the next few decades.

Um estudo sobre os determinantes dos desalinhamentos da taxa de câmbio real

ABSTRACT Departing from the literature that established a positive relation between exchange rate undervaluation and economic growth, this paper explores the causes of persistent undervaluation (or overvaluation) of the exchange rate. We first discuss the variables that could explain persistent misalignment of the real exchange rate on a theoretical basis. Then we present empirical evidence of the relation between those variables in selected country groups. We proceed by employing econometric models to estimate the overvaluation or undervaluation based on a panel dataset comprising 119 countries from 1980 to 2022. Our findings indicate that countries with higher savings rates, government debt, and openness to trade tend to exhibit a more undervalued currency, the opposite happening to countries with better terms of trade and larger capital inflows.

Application of embedded systems in electrical engineering automation and energy-saving design

Abstract With the advancement of embedded systems, their application across diverse sectors has notably expanded. This paper delineates the fundamental architecture of embedded systems and separately engineers the hardware and software components for an energy-efficient embedded system tailored for electrical engineering automation. The focus is placed on the energy-saving control module of the embedded system, which incorporates fuzzy logic with a PID control algorithm to produce definitive signal outputs. Building upon this foundation, the performance of this enhanced algorithm was evaluated and subsequently implemented in the tunnel lighting electrical engineering project. The findings reveal that the embedded system-controlled lighting setup can adjust the tunnel entrance and mouth lighting based on external luminance levels, maintaining daily energy consumption at approximately 550 kWh with an energy savings rate reaching as high as 51% per day. This study affirms the substantial potential of embedded systems in advancing energy-efficient solutions within electrical engineering automation.

An Overview of Financial Inclusion in Nepal

This article provides an overview of financial inclusion in Nepal, which refers to the availability of financial services and products to individuals and businesses, particularly those in disadvantaged and low-income regions. The research methodology employed in this study is descriptive research. The documents which were published by the government were analyzed. Nepal Rastra Bank (NRB) and the Ministry of Finance were primary sources of information. These reports contained valuable insights into financial inclusion, economic growth indicators, and program outcomes. Microfinance institutions have been instrumental in advancing financial inclusion in Nepal, offering financial services to low-income people and small enterprises that would not otherwise have access to the official banking system. There is a positive association between financial inclusion and economic growth in Nepal, as access to credit and the use of formal financial services have contributed to short- and long-term economic growth. Similarly, financial inclusion has a positive impact on the economy by increasing the savings rate, broadening credit availability, lowering income inequality, supporting financial stability, and encouraging the expansion of the digital economy. The government of Nepal has implemented various initiatives to encourage financial inclusion, including expanding credit availability, promoting financial stability, and encouraging the growth of the digital economy. Overall, financial inclusion is seen as a crucial component of economic progress and is expected to become even more important as Nepal continues to develop.