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Determinants of Household Saving in Taiwan: Growth, Demography and Public Policy

Athukorala, Premachandra; Tsai, Pang-Long

Description

This article examines the determinants of household saving in the process of economic development, in the light of the Taiwanese experience during the period 1952-99. The methodology involves the estimation of a saving rate function derived within the life-cycle framework. It is found that the household saving rate rises with both the level and the rate of growth of household disposable income. The real deposit rate has a significant positive impact, but the magnitude of the impact is modest....[Show more]

dc.contributor.authorAthukorala, Premachandra
dc.contributor.authorTsai, Pang-Long
dc.date.accessioned2015-12-13T22:34:39Z
dc.identifier.issn0022-0388
dc.identifier.urihttp://hdl.handle.net/1885/76229
dc.description.abstractThis article examines the determinants of household saving in the process of economic development, in the light of the Taiwanese experience during the period 1952-99. The methodology involves the estimation of a saving rate function derived within the life-cycle framework. It is found that the household saving rate rises with both the level and the rate of growth of household disposable income. The real deposit rate 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. While both old- and young-dependency in population have a negative impact on the saving rate, the magnitude of the impact of the former is far greater than that of the latter. Increased availability of social security provisions and enhanced credit availability also seem to reduce saving. As regards methodological implications, the study casts doubt on the household practice of lumping together public, corporate and household savings in saving analysis, and points to the need for separating young dependence and ageing as two distinct aspects of the influence of population dynamics on saving behaviour.
dc.publisherFrank Cass & Co Ltd
dc.sourceJournal of Development Studies
dc.subjectKeywords: credit provision; household expenditure; household income; savings behavior; Taiwan
dc.titleDeterminants of Household Saving in Taiwan: Growth, Demography and Public Policy
dc.typeJournal article
local.description.notesImported from ARIES
local.description.refereedYes
local.identifier.citationvolume39
dc.date.issued2003
local.identifier.absfor140202 - Economic Development and Growth
local.identifier.ariespublicationMigratedxPub5082
local.type.statusPublished Version
local.contributor.affiliationAthukorala, Premachandra, College of Asia and the Pacific, ANU
local.contributor.affiliationTsai, Pang-Long, National Tsing Hua University
local.description.embargo2037-12-31
local.bibliographicCitation.issue5
local.bibliographicCitation.startpage65
local.bibliographicCitation.lastpage88
dc.date.updated2015-12-11T09:23:00Z
local.identifier.scopusID2-s2.0-0041810614
CollectionsANU Research Publications

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