Political Stability and the Resolve to Save: The Case of Pakistan

  • Areeba Khan The Islamia University of Bahawalpur, Pakistan
  • Fatima Farooq School of Economics Bahauddin Zakariya University Multan, Pakistan
  • Sohail Saeed The Islamia University of Bahawalpur, Pakistan
  • Owais Shafique The Islamia University of Bahawalpur, Pakistan
Keywords: Savings Rate, GDP Growth Rate, Income, Interest Rate, Inflation Rate, Political Stability

Abstract

Savings is potential solution to consume the scarce resources in an efficient way, which helps large scale production, improved productivity of the labor and result in increased economic development. The purpose of this study is to examine how macroeconomic indicators like GDP growth rate, income, inflation rate and interest rate affect gross national savings rate of Pakistan and how political stability influence the relationship between these four macroeconomic indicators and savings rate. Using 10 years macroeconomic data of Pakistan from year 2006-2015, multiple regression analysis technique was run and  it was found that all four macroeconomic indicators significantly affects the savings rate. Income appeared to be strongest predictor in causing an increase in the savings rate. Although GDP found to be have an inverse relationship with savings rate. Political stability appeared to be non-significant in influencing the relationship between macroeconomic factors and savings rate.

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Published
2019-12-31
How to Cite
Areeba Khan, Fatima Farooq, Sohail Saeed, & Owais Shafique. (2019). Political Stability and the Resolve to Save: The Case of Pakistan. Journal of Business and Social Review in Emerging Economies, 5(2), 323-334. https://doi.org/10.26710/jbsee.v5i2.922