Determinants of Saving Behavior among the Rural Households: The Case of East Wollega Zone, Oromia Regional State, Ethiopia

Abstract

In Low Countries economic fluctuations and climate risk lead to income variations and this exposed the rural households vulnerable to severe hardship. Hence, their social coverage is restricted and credit and insurance markets are not well developed. The objective of this study is to investigate determinants of households saving behavior among the rural house hold. Both Primary and secondary sources of data were obtained from 385 households by using questionnaire. A binary logistic regression model was employed to analyze the data. The findings of the study revealed that the sex of household, educational level, household income and number of dependents in the family size have significant and positively affect rural household saving. While access to credit is negative and significantly affect household saving. Therefore, to improve the rural households saving concerned bodies and others stakeholder should work more through awareness creation and creating different means.

Keywords: Saving Behavior, Rural Households, Determinants, Ethiopia

DOI: 10.7176/RJFA/14-1-03

Publication date: January 31^st 2023