IMPACT OF ECONOMIC VARIABLES ON SAVINGS

Abstract

Purpose: Foremost purpose of writing this paper was to highlight and discuss the importance of savings and impact of the different economic growth variables on savings. In this research study, an effort has been made to identify the relationship between determinants of economic growth and savings. So the purpose is to analyze the relationship of savings with the different factors of economic growth, and how much they impact on country’s economy and affect their level of growth. Methodology: This is an explanatory research based on quantitative data collected with the help of a secondary source e.g.: World Bank Website and SBP website. The data was treated by using statistical tool Time Series Regression on software Eviews, to test the hypotheses. Findings: After the testing of hypotheses the findings of this search concluded that an impact of determinants of economic growth on savings. Government policies related to savings are not soeffective and these policies not helped government to utilize domestic saving effectively. Government need to introduce more incentives on savings and different saving scheme with high interest rate that attract domestic savers. Practical Implication: The conclusive discussion of this research study will help the different Government organization and economic surveys to know about the connection between savings and factors of economic growth and detect some ways how to effectively improve the process of economic growth of country and how to increase the level of savings in country. The result of this study tells how high level of domestic savings can be effective by means of economic growth and how they impact on different economic factors and different Government policies.