|
|
|
|
Title: |
What Explains Increases in Korea's Saving
Rates? |
| Author: |
Hahn, Jinsoo |
| Author
Affiliation: |
Daewoo Research
Institute |
| Source: |
International Economic Journal, Spring 1994, v. 8, no. 1, pp. 23-38 |
|
Publication Date: |
Spring 1994 |
|
Abstract: |
This paper examines Korea's saving
behavior and accounts for the determinants of Korea's saving rates that
have risen remarkably since 1971. The empirical analysis using
macroeconomic variable shows that high growth rates of disposable income
and high real interest rates have contributed to increased savings. On
the other hand, high inflation rates and government budget deficits have
had negative effects on Korea's saving rates. All these empirical
results indicate that tight government budgets and efforts to maintain
inflation rates at low levels are necessary for the Korean economy to
achieve rapid and stable growth through high levels of saving rates. |
|
