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Factors Inducing the Investment and Saving Behaviour in Pakistan

Author

Listed:
  • Muhammad Farhan Ashraf

    (Research Consultant, Pakistan.)

  • Muhammad Mehran Latif
  • Hina Kanwal

    (Pakistan Institute of Development Economics, Islamabad, Pakistan.)

Abstract

This study endeavour’s to identify in detail the behaviourof investment and saving in Pakistan's economy. Both investment and saving have a dynamic role in economic growth and development. Gross domestic product, remittances, income, dependency rate, taxes, labor participation rate, national saving, and nationalinvestment are included as independent variables for this study; data were obtained from the Pakistan Bureau of Statistics and World Bank for the years (1980-2016). The results show that the relationship between Investment and Interest rate is negative, while the relationship between saving and interest rate is positive. There is a dire need to review the monetary policy issued by the State Bank of Pakistan.

Suggested Citation

  • Muhammad Farhan Ashraf & Muhammad Mehran Latif & Hina Kanwal, 2019. "Factors Inducing the Investment and Saving Behaviour in Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 1(2), pages 82-88, December.
  • Handle: RePEc:ani:irdjoe:v:1:y:2019:i:2:p:82-88
    DOI: https://doi.org/10.52131/joe.2019.0101.0007
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Investment; Saving; Gross Domestic Product; Interest Rate; Economy;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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