Email: submit@sarpublication.com (24x7 Online Support)
South Asian Research Journal of Business and Management (SARJBM)
Volume-5 | Issue-03
Original Research Article
Impact of Inflation, Public Deficit and Foreign Direct Investment on National Savings: Case Study of Pakistan
Zaib-Un-Nisa
Published : May 17, 2023
DOI : 10.36346/sarjbm.2023.v05i03.001
Abstract
The document attempts to investigate globalization and savings behavior in Pakistan. This paper takes into account the importance of globalization as a determining factor for national, private and public savings. The Ordinary Least Square method is used for empirical analysis. The analysis is performed in two stages. In the first phase, descriptive statistics and correlation matrix are described. In the second phase, multivariate analysis explains that globalization determines Pakistan's saving behavior. The study concludes that the consumer price index, the real interest rate and workers' remittances have a positive and significant influence on savings. The government deficit has a marginally significant impact on savings, while foreign direct investment has a negative but significant impact on national and private savings. Public savings are directly and insignificantly affected. Trade liberalization has a negligible and positive impact on national savings, but has a negligible negative impact on public and private savings. Given the role of globalization and the saving behavior in Pakistan, the government is suggested to provide a favorable environment and tax incentives to improve foreign direct investment. This will increase savings in the country. To this end, the country's industrial and agricultural sectors must be stable. Furthermore, it is necessary to create an investment friendly business environment in Pakistan.

About Us


South Asian Research Publication (SAR Publication) is a publisher for scientific online and print journals started with collaboration with other scientific organizations, institutions, academicians and researchers. SAR Publication is keen to make itself as a leading publisher for scientific and academic journals with quality peer review and rapid publication... Read More Here

Copyright © SAR Publication, All Rights Reserved

Developed by JM