The Long-Run Behavior and Short-Run Dynamics of Private Savings in Morocco

Savings and Development, Vol. 27, No. 2, pp. 135-160, 2003

Posted: 5 Aug 2009  

Mina Baliamoune-Lutz

University of North Florida

Abdur Chowdhury

Marquette University - Department of Economics; United Nations - Economic Commission for Europe

Date Written: March 1, 2003

Abstract

The paper examines the trend in private savings in Morocco in the presence of financial sector development by utilizing a cointegration and error-correction modeling framework. Specifically, the hypothesis that there is stable relationship between the level of private savings and its determinants including a measure of financial reform is investigated. The statistical results provide evidence in favor of a long-run relationship between private savings and most of its determinants. More importantly, the financial reform index, as measured by financial depth, is found to have a positive impact on the level of private savings. This indicates that the financial reform program has tentatively improved resource allocation in Morocco and with the availability of a greater range of savings instruments, with positive real returns, private savings has increased.

Suggested Citation

Baliamoune-Lutz, Mina and Chowdhury, Abdur, The Long-Run Behavior and Short-Run Dynamics of Private Savings in Morocco (March 1, 2003). Savings and Development, Vol. 27, No. 2, pp. 135-160, 2003 . Available at SSRN: https://ssrn.com/abstract=1443162

Mina Baliamoune-Lutz (Contact Author)

University of North Florida ( email )

4567 St. Johns Bluff Road, South
Jacksonville, FL 32224-2645
United States

Abdur Chowdhury

Marquette University - Department of Economics ( email )

P.O. Box 1881
Milwaukee, WI 53201-1881
United States

United Nations - Economic Commission for Europe ( email )

Palais des Nations
Geneva
Switzerland

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