Private savings and transition
After the collapse in the early transition years, saving rates in Eastern European EU-accession countries have recovered strongly. But is private saving in these countries now driven by the same forces as in the EU? A GMM estimator is applied to analyze the determinants of private saving in both country groups. The main results are: saving rates are rather persistent; income growth increases saving, whereas public saving crowds out private saving. There is evidence that in both country groups domestic saving and foreign capital operate at least partly as substitutes, which is an indicator for international financial integration. The long-run effects of income growth and public saving are larger in the EU-15 than in the EU-accession countries. Copyright (c) 2005 The European Bank for Reconstruction and Development.
Year of publication: |
2005
|
---|---|
Authors: | Schrooten, Mechthild ; Stephan, Sabine |
Published in: |
The Economics of Transition. - European Bank for Reconstruction and Development (EBRD). - Vol. 13.2005, 2, p. 287-309
|
Publisher: |
European Bank for Reconstruction and Development (EBRD) |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Back on track? Savings puzzles in EU-accession countries
Schrooten, Mechthild, (2002)
-
Does Macroeconomic Policy Affect Private Savings in Europe? Evidence From a Dynamic Panel Data Model
Schrooten, Mechthild, (2004)
-
Savings in Central Eastern Europe
Schrooten, Mechthild, (2001)
- More ...