IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpfi/0410006.html
   My bibliography  Save this paper

Household Saving Behavior: The case of rural industry in Bantul

Author

Listed:
  • Aloysius Gunadi Brata

    (University of Atma Jaya Yogyakarta)

Abstract

In generally rural industries self financed their activities. by their holder’s own capital. In the situation where other financial sources were limited, the own capital is very important for rural industries. The question is what are the sources of this capital? We are talking about household saving, now. In the relation with the development of rural industries there is a need to explore the behavior of this kind of saving in order to increase the role of rural financial institutions. Based on a case study at a sub-district in Yogyakarta, I found that rural industry households have sufficiently ability to save. They were also save in financial assets, beside real assets. However it also important to underlined that these saving more in the non-bank financial institution than in the banking institution, included the Village Units of Bank Rakyat Indonesia (BRI). This situation could be indicated that banking institution just gives little attention on the rural households saving ability. Since saving ability could be argue as a repayment ability indicator, this finding also explained why there were very limited rural industries that got credit from banking institution. Using an econometric model of life-cycle theory, this study also found that household saving was determined by household’s income, both of education level and sex of the industry holders, and the varieties of industries. This mean that in order to solve the lack capital problem in rural industries we also have to consider those variables, especially the education and the varieties of industries.

Suggested Citation

  • Aloysius Gunadi Brata, 2004. "Household Saving Behavior: The case of rural industry in Bantul," Finance 0410006, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpfi:0410006
    Note: Type of Document - pdf; pages: 7
    as

    Download full text from publisher

    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/fin/papers/0410/0410006.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shumaker, Linda D & Clark, Robert L, 1992. "Population Dependency Rates and Savings Rates: Stability of Estimates," Economic Development and Cultural Change, University of Chicago Press, vol. 40(2), pages 319-332, January.
    2. Anand Chandavarkar, 1993. "Saving Behaviour in the Asian‐Pacific Region," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 7(1), pages 9-27, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shaibu Baanni Azumah & William Adzawla & Augustine Logoti Tiweh, 2015. "Analysing the effect of microenterprise development on rural households` savings in the Tolon district of Ghana: A switching regression approach," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 5(6), pages 99-108, June.
    2. Yazeed Abdul Mumin & Abubakari Razak & Paul Bata Domanban, 2013. "Analysis of Household Heads? Decision-To-Save with Financial Institutions in Ghana," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(11), pages 1466-1478, November.
    3. Ismail, Aisha & Rashid, Kashif, 2013. "Determinants of household saving: Cointegrated evidence from Pakistan (1975–2011)," Economic Modelling, Elsevier, vol. 32(C), pages 524-531.
    4. Naeem AKRAM & Muhammad Irfan AKRAM, 2015. "Savings Behaviour In Muslim And Non-Muslim Countries In Context To The Interest Rate," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 25(2), pages 161-177.
    5. Tasnim Khan & Abid Rashid Gill & Sobia Haneef, 2013. "Determinants of Private Saving: A Case of Pakistan," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 1(1), pages 1-7, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lar, Ni & Taguchi, Hiroyuki, 2020. "Population Age Structure, Saving Rate impacts on Economic Growth: Myanmar Case," MPRA Paper 102336, University Library of Munich, Germany.
    2. Neha Jain & Srinivas Goli, 2022. "Demographic change and private savings in India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(1), pages 1-29, June.
    3. Tirta Jaya Jenahar & Luis Mamisah, 2017. "Analysis of Farmers’ Safety Capability Reserved Costs of Rubber Gardens," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(10), pages 234-234, September.
    4. Mumtaz Hussain & Oscar Brookins, 2001. "On the determinants of national saving: An extreme-bounds analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 137(1), pages 150-174, March.
    5. Neha Jain & Srinivas Goli, 2022. "Demographic change and private savings in India," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(1), pages 1-29, June.
    6. Aasim M. Husain, 1995. "Long-run Determinants of Private Saving Behaviour in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 34(4), pages 1057-1066.
    7. Bichaka Fayissa & Paulos Gutema, 2010. "Dependency Ratio and the Economic Growth Puzzle in Sub-Saharan Africa," Working Papers 201010, Middle Tennessee State University, Department of Economics and Finance.
    8. F. Landis MacKellar, 1994. "Population and Development: Assessment Before the 1994 Conference," Development Policy Review, Overseas Development Institute, vol. 12(2), pages 165-192, June.

    More about this item

    Keywords

    saving; rural industry; Indonesia;
    All these keywords.

    JEL classification:

    • G - Financial Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpfi:0410006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: EconWPA (email available below). General contact details of provider: https://econwpa.ub.uni-muenchen.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.