Estimation of Saving Behaviour in Pakistan Using Micro Data

Abstract

The role of savings in investment and therefore in the development of a country cannot be exaggerated. In poor countries like ours most of the savings is done by households. In this paper the saving behaviour of Pakistan households, broken down to rural-urban, is examined. Using HIES 1998/99 and utilising OLS, it has been shown that saving behaviour in Pakistan is influenced by various factors including wealth, employment status, education, age and dependency ratio. But the most import role in influencing saving behaviour is played by household income.

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