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Saving in Latin America and the Caribbean: Performance and Policies

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  • Mr. Francesco Grigoli
  • Alexander Herman
  • Klaus Schmidt-Hebbel

Abstract

This paper analyzes saving patterns and determinants in Latin America and the Caribbean (LAC), including key policy variables and regimes. The review of previous empirical studies on LAC saving reveals contradictions and omissions. This paper presents empirical results of an extensive search of determinants of private and public saving rates, adding previously neglected variables (including different measures of key external prices and macroeconomic policy regimes), in linear form and in interactions with other saving determinants. It analyzes statistical differences in saving determinants between LAC and the rest of the world in a nested econometric framework, and discusses differences across three country subgroups within LAC. The results highlight commonalities and differences in saving behavior between LAC and other world regions, as well as within LAC, identifying the role of key policy variables and regimes.

Suggested Citation

  • Mr. Francesco Grigoli & Alexander Herman & Klaus Schmidt-Hebbel, 2015. "Saving in Latin America and the Caribbean: Performance and Policies," IMF Working Papers 2015/108, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2015/108
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    Cited by:

    1. Andrés Fernández & Ayşe İmrohoroğlu & Cesar E. Tamayo, 2019. "Saving Rates in Latin America: A Neoclassical Perspective," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 67(4), pages 791-823, December.
    2. Eduardo A. Cavallo & Mathieu Pedemonte, 2015. "What is the Relationship between National Saving and Investment in Latin America and the Caribbean?," IDB Publications (Working Papers) 90996, Inter-American Development Bank.
    3. Augusto de la Torre & Federico Filippini & Alain Ize, "undated". "The Commodity Cycle in Latin America," World Bank Publications - Reports 24014, The World Bank Group.
    4. Nnyanzi John Bosco & Kilimani Nicholas & Oryema John Bosco, 2022. "How important are remittances to savings? Evidence from the Latin America and the Caribbean Countries," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 13(1), pages 1-37, January.

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