Is Private Saving in Latin America and the Caribbean Different?

26 Pages Posted: 13 Nov 2017

See all articles by Francesco Grigoli

Francesco Grigoli

International Monetary Fund (IMF)

Alexander Herman

International Monetary Fund (IMF)

Klaus Schmidt-Hebbel

Pontifical Catholic University of Chile

Date Written: November 2017

Abstract

Private saving and economic growth are intimately linked, and low saving rates in Latin America and the Caribbean (LAC) have often been held responsible for disappointing growth in the region. Thus, identifying factors that spur saving is critical. This paper surveys previous empirical studies on LAC, highlighting contradictions, omissions and in some cases inconclusiveness of findings. Relying on a large dataset and a nested econometric framework, it analyzes private saving patterns and explores the role of its determinants in LAC, across LAC sub‐regions and compared with other regions. While the results highlight great heterogeneity in private saving rates within LAC and compared with the rest of the world, saving determinants are broadly the same notwithstanding some differences in sensitivity and contributions' sizes, and include its lag, income, demographics and public saving.

Suggested Citation

Grigoli, Francesco and Herman, Alexander and Schmidt-Hebbel, Klaus, Is Private Saving in Latin America and the Caribbean Different? (November 2017). Review of Development Economics, Vol. 21, Issue 4, pp. 1255-1280, 2017. Available at SSRN: https://ssrn.com/abstract=3069191 or http://dx.doi.org/10.1111/rode.12306

Francesco Grigoli (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Alexander Herman

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Klaus Schmidt-Hebbel

Pontifical Catholic University of Chile ( email )

Av. Vicuna Mackenna 4860
Santiago
Chile

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
0
Abstract Views
78
PlumX Metrics