Determinants of Private Saving Level: Evidence from Turkey

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TATLIYER M.

Sosyoekonomi, vol.25, no.32, pp.149-167, 2017 (Peer-Reviewed Journal) identifier

  • Publication Type: Article / Article
  • Volume: 25 Issue: 32
  • Publication Date: 2017
  • Doi Number: 10.17233/sosyoekonomi.295555
  • Journal Name: Sosyoekonomi
  • Journal Indexes: TR DİZİN (ULAKBİM)
  • Page Numbers: pp.149-167
  • Istanbul Medipol University Affiliated: Yes

Abstract

This paper attempts to ascertain the determinants of private saving level in Turkey. Weimplemented OLS estimations and constructed a VEC model in order to circumvent possibleendogeneity bias. Dataset was acquired from the World Bank, Turkish Central Bank and TurkishStatistical Institute. The period examined is from 1988 to 2010. This research found that a) private andpublic saving rates are partly complementary to each other; b) higher inflation rates and lower levelsof social security tend to increase private saving rate because of higher uncertainty; c) easing creditconstraints tends to decrease private saving; d) favorable terms of trade promote private saving byincreasing income; and e) current account balance influence private saving positively.