Determinants of Savings: An Empirical Evidence from African Countries, 1990-1999

Abstract

This study examined from an empirical point of view the response of domestic savings in a set of African countries to per capita income, commercial banks’ interest rate, and the age dependency ratio. For this purpose ordinary least squares technique is applied to a cross-section data on domestic savings, income, commercial banks’ interest rate, and age dependency ratio taken from African countries for the period (1990-1999). The results suggest that African savings are elastic to income only