An Assessment of Factors Affecting Private Saving: A Case Study on Anasora Woreda, Oromia Regional State, Ethiopia

Abstract

In developing countries like, Ethiopia, where there is low foreign direct investment and low capital inflow  from remittance and export, local saving has a significant effect on investment and national economic development as a source of finance. Though this is the case the saving from some parts of the country, Ethiopia is beyond the expectation from them. Hence this study is made by the target an assessment of factors affecting private saving on Anasoraworeda, using stratified sampling of 268 samples from salaried employees, traders and farmers. The researcher used exploratory type of research conducting as it needs, with the descriptive statistics to analysis the data. With this research result, low income and poor saving culture of the society, seasonality of business, large family size, saving awareness and inaccessibility to financial institutions have greatly impacted the private saving of the woreda. Based on the study findings we recommend that all the economic stakeholders which include the concerned woreda administrators at each level, the financial institutions and the society at large have the responsibility to change the current saving situation of the woreda people.

Keywords: private saving, economic growth and development

DOI: 10.7176/RHSS/10-7-01

Publication date: April 30^th 2020