Determinants of National Saving in Ethiopia

Abstract

This research investigates the determinants of national saving in Ethiopia over the period 1984-2014. The main objective of the study is to identify the major factors that determine national saving in Ethiopia. The ordinary least square estimation method was used to arrive at the results of the study. The result of the long run and short run models revealed that Real Gross Domestic product, investment, consumption and inflation have shown similar relationship in both models. Real Gross Demotic product is the only factor which affects national saving significantly and positively. Other factors, which positively affect national saving, are not much significant. Example, investment, consumption and inflation are factors which affects national saving both positively and in significantly in the end.

Keywords: GDP, National Saving, VEC, Long run

DOI: 10.7176/RHSS/11-9-02

Publication date:May 31^st 2021