Microeconometric Analysis of the Determinants of Savings Bahaviour in Zimbabwe: 2009-2012 (original) (raw)
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Journal of economics and sustainable development, 2017
The study focused on the empirical analysis of the determinants of savings behaviour by households in Ghana. The population consisted of individuals who constitute the employees and management, customers, market men, and women of some selected financial intermediaries in the Ho Municipality of the Volta Region of Ghana. A sample size of 152 was drawn from the population using the probability and non-probability sampling techniques. Descriptive and inferential statistics were used to analyse the data collected. The findings showed that, in general, majority of the individuals save with the financial institution in the Ho municipality. It also showed that many individuals’ choice of the financial institutions was encouraged by interest rates. It was also realized that, majority of the individuals within the Ho municipality has fewer dependents and this promotes saving behaviour in the Ho municipality. Also, in the findings, it was revealed that majority of individuals used the Automat...
Determinants of savings culture in Ghana
In Ghana and most developing parts of the world, families feel that it’s troublesome or skirting on hard to save as a result of low levels of wages (Boateng, 1994). The low profit of Ghanaian families is a result of the low levels of budgetary improvement consolidated with distinctive components, for instance, unlucky deficiency of training. The purpose of the study was to find out the determinants of savings culture in Kumasi, the second capital of Ghana. Quantitative methodology was used and sample was obtained from selected households in Kumasi. The study assembled and made utilization of primary data through the organization of organized surveys. Questionnaires were used as a data collection tool and SPSS a statically tool was used to analyze the data. It was discovered in the study that, relatively high level of savings culture among the people of Kumasi metropolis. Respondents preferred to save more for the future, they planned life ahead of time, saving money was a virtue, respondents paid close attention to how much money they spend, and before they purchased anything, they compared prices on similar items. The study recommends that financial institutions improve their operational and marketing strategies to attract all persons in the qualified age bracket being it male and female and also governing bodies like the Bank of Ghana, must take drastic measures to close down all these illegal financial institutions in the system that is dragging the reputation of the rest into the mud.
This research study aims to investigate the determinants of saving behavior of households in Omo micro finance Institution, Hosanna Town. Cross-sectional primary data were collected using self-administered close and open-ended questionnaires from 150 household clients of OMFIs selected by means of quota non-probability sampling. At the preliminary stage of the analysis, the study applied descriptive statistics, cross tabs, using SPSS statistical tool. Besides, logistic regression model was employed to identify the determinants of households' saving behavior in the study area. Thus, the result of the study revealed that among socio-demographic factors, gender and number of dependents are found to be statistically significant and have negative effects on household savings, while age, educational level and marital status of the household heads were insignificant, that unlike most previous findings, they do not have explanatory power to determine households' saving behavior on the study area. Whereas, with regard to economic factors, average monthly income, occupation and home ownership were statistically significant, which they have more explanatory power in determining the saving behavior of households. This study also provides for a rational recommendation, which concerned bodies should consider to improve the behavior of households' saving behavior. Moreover, the study provides further directions for other researchers to fill the gaps left by this study.
NOVATEUR PUBLICATIONS , 2020
This study seeks to investigate the relationship between savings and financial sector development in Zimbabwe using the Autoregressive Distributive Lag (ARDL) approach. The study used annual data from 1990 to 2018. The F-Bounds tests showed that there is a long run relationship between savings and financial sector development in Zimbabwe. The ARDL presented a bi-directional causality relationship between savings and financial sector development in both short and long run periods in Zimbabwe. The study also noted a stable long run relationship between credit to the private sector and domestic savings. Domestic savings indicated a positive impact on credit to the private sector. Current savings has a positive effect on future savings in Zimbabwe and therefore, the level of current savings determines the magnitude of growth of future savings. Real exchange rate has found to have a negative effect on private sector credits. In both periods, the real exchange rate was found to be statistically significant in explaining variations in the credit to the private sector. However, in the other periods, the real exchange rate showed a positive effect on credit to the private sector. The study also revealed that interest rate deposits has a positive effect on credit to the private sector in the previous period and is statistically significant at 10% levels. This implies that if the rate of return on savings is higher, savers are willing to save more hence, financial institutions might have the capacity to lend to the private sector in the future. However, on the hand interest rates deposits shows a negative relationship with domestic savings in other periods though not statistically significant. This implies that policy makers should not heavily rely on financial reforms to boost domestic savings hence emphasis should be put on maintaining high growth rate through agricultural development. The study also implies that in order to stimulate savings, there is need to implement appropriate financial reforms. The policy implication is that a stable exchange rate regime is critical in stabilizing the financial sector.