Factors Inducing the Investment and Saving Behaviour in Pakistan

  • Muhammad Farhan Ashraf
  • Muhammad Mehran Latif Pakistan Institute of Development Economics, Islamabad.
  • Hina Kanwal Pakistan Institute of Development Economics, Islamabad.
Keywords: Investment, Saving, Gross Domestic Product, Interest Rate, Economy

Abstract

This study endeavour’s to identify in detail the behaviour of investment and saving in Pakistan's economy. Both investment and saving have a dynamic role in economic growth and development. Gross domestic product, remittances, income, dependency rate, taxes, labor participation rate, national saving, and national investment are included as independent variables for this study; data were obtained from the Pakistan Bureau of Statistics and World Bank for the years (1980-2016). The results show that the relationship between Investment and Interest rate is negative, while the relationship between saving and interest rate is positive. There is a dire need to review the monetary policy issued by the State Bank of Pakistan.

Author Biographies

Muhammad Farhan Ashraf

Research Consultant

Muhammad Mehran Latif, Pakistan Institute of Development Economics, Islamabad.

MPhil Public Policy.

Hina Kanwal, Pakistan Institute of Development Economics, Islamabad.

Mphil Scholar, Public Policy

Published
2019-12-31
How to Cite
Ashraf, M. F., Latif, M. M., & Kanwal, H. (2019). Factors Inducing the Investment and Saving Behaviour in Pakistan. IRASD Journal of Economics, 1(2), 82-88. Retrieved from https://journals.internationalrasd.org/index.php/joe/article/view/102