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Cultural Effects and Savings: Evidence from Immigrants to the United Arab Emirates

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  • Mouawiya Al-Awad
  • Adam Elhiraika

Abstract

This study attempts to investigate the effects of cultural origin on the saving behaviour of immigrants in the United Arab Emirates (UAE). Using household survey data covering 3206 households, savings rates are found to be remarkably different across households from different countries/regions. Immigrants from developing countries appear to be uniform in terms of average household size, age, education and occupation. However, immigrants from Pakistan and India are found to have higher average savings rates than those from Arab countries, although they have relatively lower incomes. This suggests strong cultural effects on savings, a proposition that is generally supported by the econometric findings of this research.

Suggested Citation

  • Mouawiya Al-Awad & Adam Elhiraika, 2003. "Cultural Effects and Savings: Evidence from Immigrants to the United Arab Emirates," Journal of Development Studies, Taylor & Francis Journals, vol. 39(5), pages 139-151.
    • Handle: RePEc:taf:jdevst:v:39:y:2003:i:5:p:139-151
    DOI: 10.1080/00220380412331333179
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    References listed on IDEAS

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    1. Khaled Hussein & A. P. Thirlwall, 1999. "Explaining differences in the domestic savings ratio across countries: A panel data study," Journal of Development Studies, Taylor & Francis Journals, vol. 36(1), pages 31-52.
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    4. Christopher D. Carroll & Byung-Kun Rhee & Changyong Rhee, 1994. "Are There Cultural Effects on Saving? Some Cross-Sectional Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(3), pages 685-699.
    5. Stark, Oded, 2000. "On a Variation in the Economic Performance of Migrants by their Home Country's Wage," Discussion Papers 281248, University of Bonn, Center for Development Research (ZEF).
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    7. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
    8. Carroll, Christopher D & Rhee, Byung-Kun & Rhee, Changyong, 1999. "Does Cultural Origin Affect Saving Behavior? Evidence from Immigrants," Economic Development and Cultural Change, University of Chicago Press, vol. 48(1), pages 33-50, October.
    9. Mwega, Francis M, 1997. "Saving in Sub-Saharan Africa: A Comparative Analysis," Journal of African Economies, Centre for the Study of African Economies, vol. 6(3), pages 199-228, Supplemen.
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    Cited by:

    1. M. Castro Campos & C. Kool & J. Muysken, 2013. "Cross-Country Private Saving Heterogeneity and Culture," De Economist, Springer, vol. 161(2), pages 101-120, June.
    2. Nicola Fuchs‐Schündeln & Paolo Masella & Hannah Paule‐Paludkiewicz, 2020. "Cultural Determinants of Household Saving Behavior," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 52(5), pages 1035-1070, August.
    3. Alessia Aspide & Kathleen J. Brown & Matthew DiGiuseppe & Alexander Slaski, 2023. "Culture & European attitudes on public debt," New Political Economy, Taylor & Francis Journals, vol. 28(4), pages 509-525, July.

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