JOURNALNX-THE RELATIONSHIP BETWEEN FINANCIAL SECTOR DEVELOPMENT AND SAVINGS MOBILISATION IN ZIMBABWE (1990-2018 (original) (raw)

The Relationship Between Financial Sector Development And Savings Mobilisation In Zimbabwe

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 bidirectional 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.

Financial Sector Development and Gross National Savings In Nigeria

We examined the influence of financial development on gross national savings in Nigeria. The study covers the period 1981 to 2019 and data were obtained from both the Central Bank of Nigeria statistical bulletin and the World Bank database on world development indicators. The study employed the augmented Dickey-Fuller unit root test to examine the order of integration of the time series variable. From the result, it was observed that the variables were stationary at mixed order of level and first difference. We proceed to examine the existence of a long run relationship using the autoregressive distributed lag (ARDL) bounds test for cointegration. From the result, it was observed that there is a long run equilibrium relationship between financial deepening and gross savings. It was further discovered that interest rate does not have any significant effect on gross savings, while financial deepening had a positive and significant effect. The error correction term indicated that 58.77% of the short run distortions in gross savings are corrected annually. The study concluded that an efficient financial system operating under a deepening finance is the key to boosting savings mobilization in Nigeria. Efforts towards making the financial system functional at full capacity should be put in place, while the rate of interest on deposits should be increased to encourage the surplus sector to deposit their idle funds within the financial system.

Financial Sector Stability and Gross Domestic Savings in Ghana

International Journal of Industrial Management

Domestic savings are the primary source of financing for domestic investments, hence, they play an essential role in a country's economic growth. Therefore, understanding the determinants of domestic savings is critical for policy formulation.This study investigates the impact of financial sector stability on gross domestic savings in Ghana over the period 1970-2017. Applying the Fully Modified Ordinary Least Squares (FMOLS) technique, the findings show that financial sector stability exerts a positive significant effect on gross domestic savings. Broad money supply also influences savings positively although the effect is insignificant. Also, while inflation positively and significantly impacts savings, economic growth reduces domestic savings in Ghana. The study presents some policy implications.

Financial development, savings, and economic growth in Iran

The attainment of development and growth is one of the most important goals of economic policy and decision making. Financial development is one of the policies recommended by many economists to achieve economic development. Accordingly, the aim of the present study was to investigate the causality between financial development, savings and economic growth in Iran from 1973 to 2012. GDP growth rate and the ratio of credits granted to the private sector to GDP were used as an indicator of financial development and real gross national savings. All variables were stationary and the autoregressive model with distributed lags and the Wald test were used to examine the causal relationship between financial development, savings and economic growth. The results of the study indicated that the causality flows from savings and financial development to the economic growth. Besides, there is a causal relationship from savings and economic growth to financial development. The same relationship exists from economic growth and financial development to savings. In other words, there is two-way causality between the three variables under study.

Impact of Financial Sector Development & Savings on Economic Development of Pakistan

International Journal of Social Science & Entrepreneurship

The primary objective of this research was to examine the correlation between financial sector development, savings, and economic growth in Pakistan. As a developing nation, Pakistan holds considerable potential to enhance its economic condition through natural resources and favorable geographic allocation for both domestic and foreign investment. To accomplish this goal, the research utilized 2SLS techniques and yearly time-series data spanning from 1980 to 2022. The outcomes of all equations demonstrated that financial development is adversely impacted by inflation. Furthermore, high-interest rates are unfavorable for economic growth as they motivate individuals to deposit their funds in banks instead of investing them, which eventually leads to a reduction in economic activity. On the other hand, output had a positive connection with savings, whereas inflation had a negative impact on savings. In conclusion, this study emphasizes the importance of developing the financial sector ...