An econometric analysis of private domestic saving in Namibia
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Date
1999
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Abstract
This paper examines the determinants of private domestic saving in Namibia by means of a single model regression analysis. It reviews the empirical and theoretical literatures of both developed and developing countries. The review focuses on traditional theories of saving the Keynesian Absolute income hypothesis, Permanent income hypothesis, Life cycle hypothesis and Random walk hypothesis. It also laid stress on the recent determinants of private domestic saving; the income, interest rate, liquidity and borrowing constraints, public saving, macroeconomic stability. The study applied an intensive time series econometric analysis technique to avoid spurious results associated with time series data. The DF and ADF tests were applied to determine the stationarity and non-stationarity of the variables in the model. The study concludes that income and taxes are able to explain private domestic saving in Namibia
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Economics, Savings