Midlands State University Library

Private savings and transition: dynamic panel data evidence from accession countries/

Schrooten, Mechthild

Private savings and transition: dynamic panel data evidence from accession countries/ created by Mechthild Schrooten and Sabine Stephan - Economics of transition Volume 13, number 2 .

After the collapse in the early transition years, saving rates in Eastern European EU-accession countries have recovered strongly. But is private saving in these countries now driven by the same forces as in the EU? A GMM estimator is applied to analyze the determinants of private saving in both country groups. The main results are: saving rates are rather persistent; income growth increases saving, whereas public saving crowds out private saving. There is evidence that in both country groups domestic saving and foreign capital operate at least partly as substitutes, which is an indicator for international financial integration. The long-run effects of income growth and public saving are larger in the EU-15 than in the EU-accession countries.

09670750


Savings--Economic transition--EU countries--Panel study

HC244 ECO