Financial development and domestic savings in emerging Asian countries

Saving is one of the important determinants of economic growth. Therefore determinants of saving are indirectly important for a sustainable economic growth. Financial sector has come into prominence as a possible determinant of saving in the globalized financial markets. This study examines the relationship between gross domestic savings and financial development in the emerging Asian countries during the period 1992-2011 by using panel regression. We found that financial development, economic growth and real interest rate had positive impact on gross domestic saving, while aged dependency ratio had negative impact on gross domestic saving.