The Determinant of Saving Behavior of Women’s in Urban Ethiopia In Case of Arba Minch Town

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 behavior of women saving in Arba Minch town is examined. Total of 50 women’s samples is taken using systematic sampling and Logistic regression model using MLE technique was applied. It has been shown that various factors influence the saving behavior of women’s including credit, employment , income, urban agriculture, family size, education attainment of women’s and age. It is found that, education and age have negative influence on saving but statistically insignificant. Whereas, ownership of urban agriculture and income level have significant and positive effect on saving behavior of women’s. Access to credit and family size has a significant negative influence on the behavior of women saving. Tests of goodness of fit of the model shows the model is fitted, robust hetroscedasticity test prove that the model is free from the problem. The link test also shows the model is correctly specified.

Keywords: Saving, Odds Ratio, Logistic Regression, Marginal Effect, Link test