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Document Type |
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Article In Journal |
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Document Title |
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A Model of House Hold Saving in Saudi Arabia:An Empirical Study of the Period 1970-2000 نموذج للادخار العائلي في المملكة العربية السعودية: دراسة قياسية للفترة 1970-2002م |
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Subject |
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Economics |
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Document Language |
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Arabic |
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Abstract |
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The objective of this study is to specify a model that analyzes
the behavior of household saving in Saudi Arabia. Having been through
the literature on household saving in Saudi Arabia. It is to my
understanding that there been very few empirical studies, devoted to
analyze empirically the behavior of household saving or other
components of total saving in Saudi Arabia. This means that this study
will be an important contribution in this area.
After reviewing a number of saving theories and some important
field studies on household saving in Saudi Arabia and some developing
and developed countries, a partial adjustment model of Koyck type was
determined to analyze the behavior of household saving in Saudi
Arabia. This model contained several explanatory variables that were
expected to have a strong influence on the behavior of household
saving. These variables are income, inflation, doll or interest rate,
wealth, financial development, dummy variables, and finally the
depended variable (household saving) lagged one year.
The estimated model of this study revealed that the determination
coefficient is very high at 0.934. This indicated that the explanatory
variables explained most of the variations in the household saving in
Saudi Arabia. The F-statistic (56.28) showed the relation (the
explanatory variables together) as a whole is statistically significant.
Durhan-H statistic is 1.943 indicating the absence of autocorrelation.
Lastly the standard error of regression (SER) is noticeably low. The
above general statistical findings indicated that the estimated model's
goodness of fit is considerably.
The estimated model of this study indicated that the income,
wealth, and financial development variables are statistically significant
at (5%) of confidence, while the other variables (inflation, Dollar
interest rate, and financial intermediation) are found statistically
insignificant and hence were removed from the model.
Regarding the stability of the estimated model of this study, chow
test indicated that the model is unstable during the period of this study.
Moreover, the use of the dummy variable revealed that there was a
shift in the intercept of the model between the period 1973-1982 and
the period that followed it. Finally, the empirical results of this study
proved that the Gulf crisis shad an effect on the household saving
behavior in Saudi Arabia.? |
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ISSN |
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1319-0997 |
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Journal Name |
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Economics and Administration Journal |
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Volume |
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19 |
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Issue Number |
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1 |
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Publishing Year |
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1426 AH
2005 AD |
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Article Type |
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Article |
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Added Date |
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Sunday, October 11, 2009 |
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Researchers
| خالد عبدالرحمن البسام | KHALID A. AL-BASSAM | Researcher | | |
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