Household Saving Behaviour In Pakistan
Author: Umbreen Iqbal

Savings plays vital role in the growth of economy. It provides funds for investment and hence contributes to economic growth. Unfortunately saving performance of Pakistan is not promising as it should be in case of developing economies. Micro level determinants of household savings have been analyzed in this study. Non linear saving functions suggested by Keynes, Klein and Landau are estimated for Pakistan by using Household Income and Expenditure Survey (HIES) for the year 2007-08. The Ordinary Least Square method of estimation is adopted to analyze the impact of income, age, dependency ratio, education, occupation, employment status, earning status, marital status, gender, home owner ship, presence of secondary earner and region on household saving behavior. Income was found to have important determinant of household savings. Dependency ratio, education level, employment status, marital status and homeownership have negative impact on household savings; where as gender and earning status have positive impact on savings. The impact of various categories of occupation was found insignificant. The value of coefficient of age and age squares proves the life cycle hypothesis for Pakistan. Finally, urban households were found to be low savers as compared to their rural counterparts. Supervised by: Dr. Zafar Mueen Nasir

Meta Data

Keywords : Household Savings, Household Savings-Pakistan, Households-Pakistan
Supervisor: Zafar Mueen Nasir

Related Thesis​