saving in the world.pdf

Revised

SAVING IN THE WORLD: STYLIZED FACTS

Norman LoayzaHumberto Lpez

Klaus Schmidt-HebbelLuis Servn

November 1998

Abstract

The worlds average saving rate has declined for the last two decades but country savingrates exhibit a large dispersion, especially in developing regions. While in a smallnumber of developing countries saving has risen substantially (together with growth),saving has stagnated or even declined in most other developing countries. Countries thatsave more exhibit, on average, more stable saving rates over time. Country saving ratestend to rise with per capita real income levels and growth rates, domestic investment,public saving, money stocks, and private financial wealth. However substantialheterogeneity in correlations between saving and related variables is observed betweenindustrial and developing countries. These and other findings on the performance ofnational, private, and household saving in industrial and developing economies aredocumented in this paper.

JEL class.: E21, O16.

Lpez, Loayza, and Servn: DECRG, The World Bank; Schmidt-Hebbel: Central Bank of Chile.We are grateful to Mita Chakraborty, George Monokroussos, and Douglas Smith for excellentresearch assistance.

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1. Introduction

The worlds average saving rate has been declining since the first oil shock andthrough the early 1990s. However this trend conceals a large and increasing dispersion ofsaving rates, particularly among developing countries. The large heterogeneity in savingbehavior is associated to country and time differences in levels of development, growthperformance, and fiscal and financial policies.

This paper provides a detailed statistical account of international trends in savingand its association with saving-related variables. The data used here come from theSaving Project World Database described in a companion paper (Loayza, Lpez,Schmidt-Hebbel, and Servn 1998). This dataset represents the largest and mostsystematic collection to date of annual time-series on country saving and saving-relatedvariables. It is an unbalanced data pool spanning a maximum of 35 years (from 1960 to1994) and 112 developing and 22 industrialized countries. Thus the facts documentedbelow are based on very large data samples; for instance, the number of available annualcountry observations on the gross national saving rate is 3464.

Several previous saving studies have described world-wide saving trends.Examples include Masson, Bayoumi, and Samiei (1995) and Schmidt-Hebbel and Servn(1997, 1999), which have typically relied on smaller datasets and a smaller number ofvariants with regard to saving measures and saving-related variables, as well as time andregional aggregation. In this paper we exploit the Saving Project World Database bydescribing trends and correlations based on: (i) different saving aggregates (national,public, private, household, and corporate), (ii) different public saving measures (centralgovernment and public sector, with and without adjustment for capital gains due toinflation), (iii) different world regions and country groups, (iv) different summarystatistics (unweighted averages, medians, GNP-weighted averages, and measures ofdispersion), and (v) a large set of saving-related variables and potential savingdeterminants.

This paper is meant to be descriptive and focuses on time trends and pairwisecorrelations based. In a separate paper, the same database is used to estimate savingmodels in a multivariate framework (Loayza, Schmidt-Hebbel, and Servn 1998). Thispaper is organized as follows. Section 2 of this paper briefly discusses the issues of datacoverage and definitions -- we refer to our companion paper for a detailed description ofthe data. In Section 3, we focus on the time trends observed in different saving measuresduring the last three decades in the world at large as well as in relevant country groupsand regions. Section 4 examines the association between various saving measures andsaving-related variables, both across countries and over time, using pairwise correlations.Section 5 concludes briefly. A separate Annex (available on request) presents figures ontime trends and bi-variate correlations that complement the information in the tablesincluded in the main text.

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2. Data definitions and coverage

2.1 Income and saving measures

Our preferred measure of aggregate income, consistent with gross national saving,is gross national disposable income inclusive of all current and capital transfers fromabroad (GNDI). Gross national saving (GNS) is defined accordingly, as the differencebetween GNDI and aggregate (private and public) consumption expenditure. Bothvariables are in current-price units of national currency. These comprehensive measuresdominate both the related variables that exclude transfers and the corresponding domesticvariables that reflect geographical boundaries (Gross domestic saving and GDP). Therationale for our choice is that the national variables inclusive of all transfers are morerelevant to the agents or sectors for which we identify specific saving hypotheses anddeterminants. In fact the national sector simply represents the aggregation of the privateand public sectors. Thus GNS/GNDI is the relevant aggregate or national saving rate (incurrent prices) used in this paper.1

At the government level, four saving measures are used, corresponding to thecombinations of two alternative government coverage definitions (consolidated centralgovernment and public sector) and two alternative statistical measures (unadjusted andadjusted for capital gains from inflation). Gross private saving (GPS) is obtainedresidually by subtracting any of the four previous government saving measures fromnational saving. Hence there are four residual private-sector saving (and income)measures that can be derived. We denote them respectively: CU (central government,unadjusted), CA (central government, adjusted), PU (public sector, unadjusted), and PA(public sector, adjusted). The coverage of these series varies. The preferred measures forgovernment and private saving are the PA measures, which better capture the savingeffort of the relevant economic unit. GPS/GPDI represents the private saving rate, whereGPDI is the gross private disposable income measure consistent with the selecteddefinition of GPS. GPDI itself is computed as GNDI minus the relevant definition ofgovernment saving plus public consumption expenditure.

A disaggregation of net private sector saving between corporate and householdsaving is used for a smaller available sample.

All saving variables (and the corresponding income measures used as thedenominator to construct saving ratios) are in current prices. Consumption andinvestment data (and the corresponding ratios) are in constant prices.

1 For a discussion of measurement issues and problems that affect aggregate saving data see Schmidt-Hebbel and Servn (1999), chap. 2.

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2.2 Country and time coverage

Country aggregation is defined in terms of country groups and geographicalregions. The five country groups are: industrial OECD countries (IND), China (alone),other takeoff developing countries, other developing countries, and the world. Takeoffcountries are defined a priori as those developing countries that have achieved high andsustained saving and growth rates during the last two decades.2

The country regions are defined as: industrial OECD (IND), China, other EastAsia and Pacific (EAP), Middle East and North Africa (MENA), Sub-Saharan Africa(SSA), South Asia (SA), and Latin America and Caribbean (LAC).

Time coverage is dictated by data availability within the period 1960-94. Thestarting year of the data varies across countries, but is dated mostly between 1960 and1975.

We use three different samples: the fixed and the full sample for national andprivate saving data, and a smaller household sample for data on household saving.3 Thefixed sample is comprised of a total of 85 countries, distributed by country regions andcountry groups. Each country in a specific region has a full sample of annualobservations for every year from the starting year for each region (for instance, 1960 foreach IND country or 1967 for each LAC country) through 1994. In other words, eachregion in the fixed sample is a balanced panel even though the fixed sample is not. The85 countries distributed by the seven country regions are summarized in Box 1.

2 This group includes China (considered separately) and 9 market economies: Hong Kong, Indonesia,Korea, Malaysia, Singapore, Taiwan (China), and Thailand in East Asia; Mauritius in Africa; and Chile inLatin America. Botswana -- another high-saving and high-growth economy -- has been excluded fromour sample because of lack of acceptable data.

3 Due to data problems or lack of data, the following ten countries are omitted from all three samples:Bhutan, Brazil, Israel, Nicaragua, the unified post-1991 Germany, United Arab Emirates, Zambia, Somalia,Gabon, and Yemen (former Arab Republic of).

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Box 1Distribution of Countries in the Fixed Sample by Regions

The seven regional groups are the following:

IND: 1960-1994.Australia, Austria, Belgium, Canada, Denmark, Finland, France, Greece, Iceland,

Ireland, Italy, Japan, Luxembourg, Netherlands, New Zealand, Norway, Portugal, Spain,Sweden, Switzerland, United Kingdom, and United States (22 countries).

China: 1966-1994.

EAP (without China): 1966-94.Fiji, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan

(China), and Thailand (9 countries).

MENA: 1967-1994.Algeria, Cyprus, Egypt, Iran, Jordan, Morocco, Saudi Arabia, Tunisia, and Turkey

(9 countries).

SA: 1968-1994.India, Pakistan, and Sri Lanka (3 countries).

SSA: 1970-1994.Cote dIvoire, Benin, Burkina Faso, Central African Republic, Gambia, Ghana,

Kenya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Niger, Nigeria, Rwanda,Senegal, Sierra Leone, South Africa, Togo, and Uganda (20 countries).

LAC: 1967-1994.Argentina, Bolivia, Chile, Colombia, Costa Rica, Ecuador, El Salvador,

Guatemala, Haiti, Honduras, Jamaica, Mexico, Panama, Paraguay, Peru, Trinidad andTobago, Uruguay, and Venezuela (18 countries).

The three developing-country groups are the following:

All developing countries: 1970-1994 (63 countries, including China).

Take-off developing countries: 1970-1994 (9 countries, without China).

Non take-off LDCs (53 countries, without China): 1970-94.

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Box 2Sample Sizes

GNS/GNDI GPS/GPDI (PA) NHHS/GPDIFixed SampleCountries 82 60Years 25-35 25-35Country-years 2665 1427

Full SampleCountries 126 82Years 2-35 4-35Country-years 3160 1700

Household SampleCountries 31Years 5-32Country-years 644

The full sample comprises the fixed sample, all annual country observations thatare available before the start of the fixed sample periods, and all annual observations forany available years for countries excluded from the fixed sample. Hence the full sampleis unbalanced also at the regional level. Finally the household sample comprises a muchsmaller unbalanced data panel for net household saving. The number of countries, yearsand country-year observations for each sample is summarized in Box 2.4

Tables 1.1 through 4.3 report summary statistics averages, medians, andmeasures of dispersion of saving rates and related variables for country regions andcountry groups. The first digit of table numbers (1, 2, 3, and 4) denotes respectivelyinformation for gross national saving, gross private saving, net household (and/orcorporate) saving, and aggregate demand components. The summary informationreported in the tables is based on the above mentioned samples for the latter variables.

4 The unbalanced panel of 31 countries and 644 country-year observations is for net household saving data(as used in tables 3.2 and 8, and in figures 3.2 and 8.1-8.10). For both net household and net corporatesaving data (i.e., for disaggregated net private saving) a smaller sample is available, comprising 31countries and 580 country-year observations (as used in Table 3.1 and Figure 3.1). An even smaller sampleof 430 country-year observations (not used in this paper) is available in the World Bank Saving Databasefor both gross household and corporate saving data (i.e., for a disaggregated gross private saving). Finallynote that total net private saving reported in Table 3.1 as Sum (of net household and corporate savingfigures) is different from any of the four measures of gross private saving reported elsewhere.

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The tables are generally reported for both the comprehensive cross-country time-series (orpooled-data) sample and the cross-country sample of country averages. In addition,separate summary statistics are reported in most cases for three different sub-periods thatroughly correspond to decades before and after the first oil shock: 1965-73, 1974-84, and1985-94. 5

Tables 5-8 report full-sample correlations between each of four saving variables(national saving, private saving CU, private saving PA, and net household saving,respectively) and a number of saving-related variables, among them potential savingdeterminants. Correlations are reported for three country regions in both the panel andlong-run cross-section samples. Table 9 reports full-sample correlations among saving-related variables for both the world panel and world long-run cross-section samples.

3. Saving trends and facts

Next we discuss the main regional and world saving trends and cross-regionalsaving differences, complemented by some information on consumption and investmenttrends.

On the basis of the information described earlier, we can identify several stylizedfacts and trends concerning saving across the world:

(1) The worlds average national saving rate has declined since the early 1970s.(Tables 1.1 - 1.2; figures 1.1 - 1.4c)

The worlds average gross national saving rate (the ratio of gross national saving to grossnational disposable income, GNS/GNDI) has been declining for the last three decades.Looking across decades, the median (fixed-sample) world saving rate fell from 20.7% in1965-73 to 20.3% in 1974-84, and further to 18.7% in 1985-94. Indeed, the world savingrate attained a peak of 23% in 1973-74, at the time of the first oil shock. From then on itdeclined steadily to reach a trough of 18% in 1992-93. This trend is consistently observedacross different statistics (medians, unweighted averages, GNP-weighted averages),samples (fixed and full), and aggregate saving measures (national and domestic).6

(2) Saving rates show a large international dispersion.

5 Note that the data reported for the first sub-period (1965-73) comprise only observations that areconsistent with the corresponding country or region group (for example, SSA observations start only in1970). Also note that the summary statistics for the pooled-data sample, for example the medians, arecalculated from the full pool of data for the corresponding period. For instance SSAs median saving ratefor 1965-73 is the median of all corresponding observations for all countries during this period -- it is notthe median of each countrys median or mean.

6 Recent and incomplete data for the years after 1994 (not reported in this paper) suggest that a possiblebreak is observed after 1992-93, as many countries have adopted more orthodox fiscal policies reflected inhigher public and hence higher national saving rates. This is the case of European countries workingtoward meeting Maastricht criteria for monetary union and Latin American countries strengthening theirmacroeconomic policies. Time will tell if this is starting a sustained trend break from the past trend declinein saving rates.

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(Tables 1.1 3.2)

In the fixed pooled-data sample, the standard deviation of GNS/GNDI is 9.2%,with the minimum at 30.6% and the maximum at 77.9%. This reflects a huge variationacross space and time, with the bulk of the variability stemming from the cross-sectiondimension. If we control for time variation by focusing on the cross-country sample, thestandard deviation of the saving rate declines to 7.6%, with the minimum long-runcountry saving rate at 3.7% and the maximum at 38%.7 This large dispersion reflectsmostly a large variance of saving rates among developing countries. By contrast, savingrates are much more homogeneous across industrial countries (as shown by theconsiderably lower standard deviation for this sample). Similar differences are observedin the case of the gross private saving rate (the ratio of gross private saving to grossprivate disposable income, GPS/GPDI) and the net household saving rate (the ratio of nethousehold saving to gross private disposable income, NHS/GPDI).

(3) Saving rates show divergent patterns across developing regions.(Tables 1.1 - 1.2; figures 1.0 - 1.4c)

The median (fixed-sample) GNS rate in developing countries rose from 16.7% in1965-73 to 19.0% in 1974-84, declining subsequently to 17.7% in 1985-94. However,this aggregate behavior disguises widely different and even diverging saving patternswithin the developing world. Saving rates have risen rapidly in China and the nine othertakeoff countries since the 1970s. In fact, the median national saving ratio in the ninetakeoff countries increased gradually and systematically from 20% in 1970-1972 to 34%in 1992-94. Chinas already high saving rate (at 29% during 1970-77) was boosted by theeconomic reforms started in 1978, rising to 41% in 1993-94.

By contrast, saving rates in other developing countries and regions stagnated oreven declined during the last three decades. The divergent saving trends between takeoffand non-takeoff countries was also reflected across regional aggregates. As takeoffeconomies are highly represented in the East Asia and Pacific region, the latters mediansaving rate (fixed sample) shows a spectacular rise from 20% in 1966-68 to 33% in 1992-94. South Asias median saving rate also shows a substantial rise, from 15% in 1968-70to 22% in 1992-94. In Latin America and the Caribbean the median national saving ratedoes not show a clear trend (it hovers around an average 16% during 1967-94) but showsswings, increasing after the first oil shock (1973-80) and declining with the debt crisis(1982-84). Nor is a clear trend observed in the Middle East and North Africa althoughswings correlated with the price of oil are observed in this region around its 1967-94median saving rate of 22%. In Sub-Saharan Africa the median saving rate declinesprecipitously from 14% in 1970-76 to a trough of 10% in 1980-86 but recovers to the14% level in 1987-94. Notwithstanding this recovery, SSAs saving rate is the lowestacross all regions.

7 The dispersion measures in the full sample (Table 1.2) are similar to those in the fixed sample (Table 1.1).

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(4) Industrial-country saving rates have declined strongly since the early 1970s.(Tables 1.1 - 1.2; figures 1.0 - 1.4c)

The median (fixed-sample) GNS rate in industrial countries increased graduallyfrom 25% in the early 1960s to a historical peak of 27.5% in 1972-73, just before the firstoil shock. Since then, it has declined systematically, falling to a (median) level of 19% in1993-94.

(5) Average saving rates are negatively correlated with standard deviations ofsaving rates over time

(Tables 1.1, 2.3, and 3.2; figures 1.5, 2.10, 2.11, and 3.2)

Countries with lower saving rates also show a larger dispersion over time in theirsaving rates. For instance, while the unweighted average (fixed-sample) GNS rate inindustrial countries attained 23.4% in 1965-94, the standard deviation over the sameperiod of industrial-country saving rates was on average 5.5%. However in developingcountries the unweighted average (fixed-sample) GNS rate was 18.1% in 1965-94, withan average standard deviation of 10.2%. Therefore the coefficient of variation of saving(the ratio of its standard deviation and its average) attained 0.56, more than twice thelevel of 0.24 observed in industrial economies. A similar negative correlation betweenfirst and second moments is observed in the case of gross private saving rates, but not inthe case of net household saving rates. This reflects that low-saving countries show adismal saving behavior not only in their low saving effort but also in their high savingvolatility.

(6) Developing-country public saving has been on the rise since the early 1980s.(Table 2.1; figures 2.1-2.4)

Public saving is low in both industrial and developing countries typicallybetween one-tenth and one-fourth of aggregate national saving. The median (fixed-sample) public saving rate in developing countries was halved between the late 1970s andearly 1980s. Since then fiscal adjustment has been successful in raising public savingrates back to (or surpassing) their previous peaks. This trend is common to the fourdifferent public saving measures although their levels differ considerably from each other.Unadjusted central government saving stood at only 2% of GNDI in the early 1990s whilethe adjusted public sector saving measure attained 7% in the early 1990s. The data showsthat approximately half of the difference between both measures is due to higher savingby the non-central government levels of the public sector (as reflected by the differencebetween CU and PU, or between CA and PA saving levels) while the other half reflectscapital gains from inflation, that lead to higher adjusted central government or publicsaving levels (the difference between CU and CA, or between PU and PA saving levels).

(7) Industrial-country public saving has declined significantly since 1975.(Table 2.1; figures 2.1-2.4)

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The median (fixed-sample) public saving rate in industrial OECD countries fellsteadily from the mid-1970s to the mid-1980s, recovered partly in the late 1980s, andthen fell precipitously to reach negative levels in 1992-93. As in the case of developingcountries, this trend is common to all four public saving measures.

(8) Capital gains from inflation accruing to the public sector are of similarmagnitude in developing and industrial economies.

(Table 2.2)

Computing the difference between adjusted and unadjusted public (private) savingyields the capital gain (loss) accruing to the public (private) sector due to inflation.8 Inthe world at large the inflation tax thus computed has ranged from 1.1% to 1.5% of GNDIduring the last three decades, slightly larger in industrial than in developing countries.However while the inflation tax shows a trend decline in industrial countries, it hasincreased in developing countries during 1985-94.

(9) Private saving has declined in developing countries.(Tables 2.0, 2.1 and 2.3; figures 2.3 - 2.9)

Private saving is obtained residually from national saving and any one measure ofpublic saving. Whatever measure is used, the median private saving rate in developingcountries declined between 1974-84 and 1985-94. 9

As in the case of the national saving rate, the trend decline in private savingconceals large differences within developing regions. During the last three decades theregional median private saving rates increased substantially in East Asia and Pacific, theMiddle East and North Africa in South Asia, declined in Latin America and theCaribbean, and fell precipitously in Sub-Saharan Africa.

(10) Private saving is roughly constant in industrial countries.(Tables 2.1 and 2.3; figures 2.3 - 2.9)

The median private saving rate in industrial countries remained virtually constantduring the last two decades hovering around 23% when defined as consistent with 8 The calculation of the public (private) sectors capital gains (loses) from inflation is based on theoutstanding stocks of central government or public-sector debt and the monetary base. Public-sector capitalgains from inflation exceed those to the central government if state-owned enterprises or sub-national levelsof government are net debtors to the private sector. Notice that the net capital gains from inflation reportedin Table 2.2 differ from the corresponding differences between adjusted and unadjusted saving ratesreported in Table 2.1 because of differences in samples.

9 Notice that the differences betwen regional median private saving rates (consistent with the PA definition)reported in Tables 2.1 and 2.3 is due to the use of GNDI in Table 2.1 and GPDI in Table 2.3 asdenominators.

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unadjusted central-government saving or just over 18% when defined as consistent withadjusted public-sector saving.

(11) For our much smaller sample of net household and corporate saving rates, bothrates are larger in developing countries than in industrial economies.

(Table 3.1; figure 3.1)

Both household and corporate saving rates are generally higher in developing thanin industrial countries in our smaller sample for disaggregated net private saving rates.For 1985-94 the median net household saving rate (as a ratio of gross private disposableincome) is 8.4% in developing and 6.7% in industrial countries. For the same decade theregional median net corporate saving rate (as a ratio of gross private disposable income)is 5.6% in developing and 3.9% in industrial economies.

(12) World private consumption ratios to GDP are stable over time but there arediffering trends across regions.

(Table 4.1; figures 4.1 - 4.1b)

Median private consumption to GDP ratios (at constant prices) do not show muchvariation since 1970 -- for the world at large (at 64%), industrial countries (at 60%), andother developing economies (71%). However private consumption ratios showsubstantial declines in China and other takeoff countries, and in the regions of East Asiaand Pacific, South Asia, and Latin America and the Caribbean. In Sub-Saharan Africathe median private consumption ratio to GDP rises during the last three decades. Thesepatterns are generally -- but not always -- consistent with the regional trends in privatesaving rates. The differences in time trends between current-price private saving toincome ratios and constant-price private consumption to GDP ratios (for instance in LatinAmerica and the Caribbean) reflect trend changes in the relative price of consumption(The ratio of the private consumption deflator relative to the GDP deflator) as well astrend changes in the difference between GDP and gross private disposable income.

(13) Private consumption levels generally follow random walk processes

In order to assess persistence of the time-series process of constant-price privateconsumption (in levels, not as a ratio to GDP), for each country in the sample wecompute the persistence parameter corresponding to the spectral density at the zerofrequency. The average of the resulting point estimates of the persistence parameter andits standard error, as well as the group average of the first-order autocorrelationcoefficients (of the first difference of consumption), are reported below for the worldsample as well as various regional groups.

Persistenceparameter

Standard error First autocorrelationcoefficient

World 1.05 0.098 0.04Industrial 1.55 0.09 0.34

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China 0.025 0.003 -0.22EAP 1.21 0.14 0.13MENA 0.85 0.12 -0.1LAC 0.76 0.07 -0.07SA 1.28 0.17 0.06SSA 0.92 0.07 -0.04

The estimates reveal that the spectral density at the zero frequency for real privateconsumption is generally consistent with a random walk process (i.e., a persistenceparameter of 1), which in itself is consistent with the simple version of the permanent-income hypothesis for consumption. The estimate for the world sample is 1.05 (with astandard error of 0.04) and not significantly different from 1. In four regions it is also notsignificantly different from 1, also implying that the random-walk hypothesis cannot berejected. However the estimate is 1.55 (significantly larger than 1) for industrialcountries. In contrast, the estimate is 0.76 (significantly smaller than 1) for LatinAmerica and Caribbean, suggesting that consumption is stationary in the latter region.Finally in China the persistence parameter estimate is extremely low (0.025), implyingconsumption stationarity even more strongly than in LAC.

(14) World government consumption ratios are higher in industrial countries thanin developing countries.

(Table 4.2; figures 4.2 - 4.2b)

Median real government consumption ratios to GDP (at constant prices) have notchanged much at world or regional levels of aggregation. The median 1965-94 ratio is12.4% in developing countries and significantly higher -- at 17.1% -- in industrialcountries. This is consistent with Wagners Law, the empirical observation thatgovernment size tends to increase with per capita income levels.

(15) World investment rates have declined since the early 1970s.(Table 4.3; figures 4.3 - 4.3b)

The median world gross domestic investment ratio to GDP (at constant prices)shows a steep decline after the seventies. This trend reduction is observed in bothindustrial and other developing countries although the latter exhibited a temporaryinvestment boom during 1974-1982. By contrast median investment rates have increasedin takeoff countries (China) from 24% (30%) during 1970-74 to 36% (37%) in 1990-94.

4. Correlation between saving and related variables

Now we turn to the correlation between saving and key saving-related variables,using both the long-run cross-country and cross-country time-series dimensions of thedata. Tables 5-8 report the correlation between a set of saving related variables and thegross national saving rate (Table 5), the gross private saving rate (in two versions, Tables6 and 7), and the net household saving rate (Table 8). The cross-correlations among

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saving-related variables are reported in Table 9. Figures 5.1 through 8.10 in the Annexdepict cross-country, pair-wise correlations that supplement the correlation coefficientsreported in the tables.

Before turning to the specific results we want to point out two general findings.First, in most cases the bi-variate correlations between saving rates and saving-relatedvariables are similar for the gross national saving rate and the gross private saving rate.However they tend to be quite different for the much smaller sample of net householdsaving rates. We attach more weight to the correlations observed between gross nationaland private saving rates (on the one hand) and saving-related variables (on the other hand)than to the correlations observed between the net household saving rate and relatedvariables, as the latter are based on a much smaller country sample.

Second, the cross-country correlations are typically larger in magnitude than thepooled-data correlations -- an observation common to national, private, and householdsaving rates. This suggests that the annual time-series data are noisier than the cross-country observations.

The data reveal the following specific findings.

(i) Saving rates and income levels are positively correlated.

Most saving measures show a significant and positive cross-country correlationwith real per capita income levels. For the world sample, the correlation coefficientsbetween gross national saving rate (in Table 5) and the gross private saving rate (in tables6 and 7), on the one hand, and real per capita income levels, on the other, are ca. 0.50 forthe cross-country sample and ca. 0.40 for the pooled-data sample and are significant at the5% level. The correlations are higher in developing countries than in industrialeconomies. For the household saving sample, however, the correlation is close to zero(Table 8).

Fig. 5.1 confirms the correlation for the GNS rate at the cross-country level. Thefigure also shows that takeoff developing countries are located at low to middle-incomelevels with abnormally high saving rates. In contrast, industrial countries seem totypically save less than what should be expected given their high income levels. Thissuggests that the saving-income relation tapers off at high income levels. Non-takeoffdeveloping countries are clustered at low income and low saving levels. Separateregression lines for developing and industrial economies confirm the cross-regionalheterogeneity in the saving-income relation, showing a larger positive correlation fordeveloping countries.

(ii) Saving rates and growth rates are positively correlated.

All saving measures show positive correlations with real per capita incomegrowth rates. For the world sample, the correlation coefficients between gross national

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and gross private saving rates and real per capita growth rates are ca. 0.40 for the cross-country sample and ca. 0.29 for the pooled-data sample and are significant at the 5%level. The correlations between household saving and growth are lower, at ca. 0.37 and0.17, respectively. As opposed to the preceding correlation between saving rates andincome levels, the saving-growth correlation is higher for industrial than for developingeconomies.

Fig. 5.2 confirms the world correlation at the cross-country level. The figure alsoshows that industrial economies are closely clustered at moderately high saving andgrowth rates. Takeoff countries are clustered in the upper right-hand corner of the figures,at very high saving and growth rates. Non-takeoff LDCs show a larger dispersion andthey are centered at low saving and growth rates.

(iii) National saving and domestic investment rates are positively correlated.

The correlation between the GNS rate and the gross domestic investment (GDI)rate is large and significant -- ca. 0.70 for both the world at large and developingcountries, and close to 0.60 for industrial economies. For private saving the correlation islower. For household saving in industrial countries the correlation turns to be negative.

The high cross-country correlation between long-run national saving and grossdomestic investment rates is confirmed in Fig. 5.3. OECD countries are more frequentlylocated above the 45-degree line (along which the current account is balanced), reflectingthat they tend to be capital exporters, while most developing economies, that tend to becapital importers, are located below the line.

(iv) National saving and public saving rates are positively correlated.

The correlation between the national saving rate and the public saving rate ispositive and high. For the world at large, the correlation coefficient is ca. 0.35 for thecentral government unadjusted (CU) saving rate and ca. 0.40 for the public-sectoradjusted (PA) saving rate; both are significant at the 5% level . At the sub-sample levelsof developing and industrial countries, the correlations are even larger, in the range of0.47 to 0.60. These figures suggest a partial offsetting of private-public saving levels, anissue addressed next.

(v) The correlation between private and public saving rates are not robust acrossdifferent saving measures and regional samples.

Private and public saving rates, consistent with unadjusted measures for thecentral government (CU), are mostly uncorrelated (with exception of a 0.13 correlationfor both the cross-country developing and industrial country sub-samples). The cross-country correlations for private and public saving, consistent with adjusted measures for

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the public sector (PA), are positive and moderate (but not significant at the 5% level),ranging from 0.12 for the world sample to 0.22 for developing countries. At thehousehold level, the cross-country correlation is 0.4 for the world (significant at 5%level), -0.58 for industrial economies (significant at 5% level), and 0.126 for developingcountries (not significant at 5% level). Therefore little can be concluded about private-public saving offset coefficients from these simple correlations.

(vi) Saving and the terms of trade are uncorrelated.

The correlation between saving rates and the terms of trade (the relative price of acountrys exports and imports) is generally not significantly different from zero andfrequently changes sign across different saving measures and data samples.

(vii) The correlation between saving and the real interest rate is not robust acrossdifferent saving measures and samples.

The world correlation between national or private saving rates and the real interestrate ranges from 0.31 to 0.34 (significant at a 5% level) at the cross-country level.However it is much smaller for the pooled-data samples (and mostly negative for theindustrial countries). At the household level the cross-country correlation turns negativeand is ca. 0.35.

(viii) The correlation between saving and the inflation rate is not robust acrossdifferent saving measures and samples.

The correlation between saving rates and inflation rates displays a pattern that issimilar but of opposite sign to the one observed between saving and the real interest rate.This would not be surprising when considering that the real interest rate is constructed asthe nominal rate minus inflation. However the correlation between the two lattervariables is not very high, varying between -0.42 for the cross-country sample and -0.18for the pooled-data sample (Table 9).

The correlation between national or private saving rates and the inflation rate isgenerally negative and often not robust, varying between 0 and 0.50. It tends to belarger in magnitude for industrial than for developing countries. However at thehousehold level the correlation turns positive and varies significantly, not exceeding 0.35.Therefore across all samples and saving measures the saving-inflation correlation is notrobust.

(ix) Saving and money stocks are positively correlated.

All saving measures show positive correlations with the M2 money stock ratio toincome. For the world sample, the cross-country correlation coefficients for grossnational or gross private saving rates and M2 are ca. 0.5. The correlation is larger in

15

industrial and lower in developing economies, and larger in the cross-section than in thepanel dimension.

(x) Saving and private financial wealth are also positively correlated.

The private financial wealth rate is the ratio of the sum of the monetary base,private net foreign debt, and public net domestic debt to national disposable income. Thesaving-private wealth correlations are positive and tend to be significant and larger forindustrial countries.

(xi) The correlation between saving rates and private credit flows is not robust acrossdifferent saving measures and samples.

Correlations between saving rates and private credit flows vary with savingmeasures and samples. An extreme case of lack of robustness across samples is observedfor household saving, where cross-country correlations with private credit flows rangefrom 0.42 in developing countries to +0.63 in industrial countries.

(xii) The correlation between saving rates and social security spending flows is notrobust across different saving measures and samples.

The cross-country correlation between national or private saving rate and theshare of social security spending in total public expenditure is close to 0.60 in industrialcountries (significant at the 5% level). However it is not significantly different from zerofor developing economies. At the household level the correlation is negative across bothregional groups and is larger for developing countries.

(xiii) The correlation between saving and the old-age dependency ratio is not robustacross different saving measures and samples.

The world correlation between the GNS ratio and the old-age dependency ratio ispositive and ca. 0.34 (significant at the 5% level) for GNS and GPS. However a verydifferent picture emerges at sub-sample levels: correlations change in magnitude and signfor developing and industrial countries and across national and private saving measures.For household saving the correlations are systematically negative.

(xiv) Saving rates and young-age dependency ratios are negatively correlated.

A clearer picture is obtained for the correlation between saving measures and theyoung-age dependency ratio. The world cross-country correlation between saving and theyoung-age dependency ratio is negative and ca. -0.50 (significant at the 5% level) for bothGNS and GPS. This negative correlation is generally maintained for developing andindustrial countries separately. For household saving, however, the correlation is low andunstable in sign.

16

(xv) The correlation between saving rates and the urbanization ratio is not robustacross different saving measures and samples.

At the world level the cross-country correlation between saving and theurbanization rate is ca. 0.50 (significant at the 5% level) for GNS and GPS. However atthe sub-sample level the correlations are of opposite sign: for developing countries it isca. 0.4 (significant at the 5% level) and for industrial economies it is ca. 0.25(significant at the 5% level). The negative correlation is confirmed for industrialcountries for the household saving sample.

(xvi) The correlation between saving and income concentration is negative in the worldat large but not robust across different regional samples.

For the world at large, the cross-country correlations between national and privatesaving (on one hand) and the Gini coefficient for personal income concentration (on theother hand) are always negative, ranging from 0.11 for household saving to -0.42 forprivate saving (the latter is significant at a 5% level). However the correlations are highlyunstable at sub-sample levels, ranging from moderate positive to large negative values.

(xvii) Household and corporate saving rates are negatively correlated.

A cross-country world correlation of 0.49 (significant at a 10 % level) isobserved between household and corporate saving rates for our small country sample.The coefficient rises in magnitude to about 0.63 at the sub-sample levels for developingand industrial countries. This suggests high household-corporate saving offsetting.

(xviii) Real gross domestic investment rates and real per capita GDP growth rates arepositively correlated.

There is a high correlation between real GDI ratios (to real GDP) and per capitagrowth rates of real GDP, attaining .23 in the world at large and significant at the 5%level. In developing countries, the correlation is .23, while in industrial countries it is .33,both significant at 5%.

Finally we report cross-correlations among saving-related variables (Table 9),with cross-country correlations shown in the lower half and pooled-data correlationsreported in the upper half of the table. Of the large number of results we want to singleout only one: the high correlation (in magnitude) observed between the level ofdevelopment (reflected by per capital real income levels) and saving-related variables thatalso proxy structural indicators of development, including financial depth (M2/income),social security expenditure, demographic dependency ratios, urbanization, and incomeconcentration. While this result is not unexpected, it is important to keep it in mind when

17

estimating saving functions in a multivariate framework that accounts for the influence ofboth per capita income and structural indicators.

5. Conclusions

This paper has documented the main saving trends and correlations betweensaving and other variables observed in industrial and developing countries during the lastthree decades. This has been possible by using the recent Saving Project World Databaseput together by the World Bank. The paper has provided a comprehensive description offacts, trends, and correlations based on different saving aggregates, alternative publicsaving measures, various world regions and country groups, different regionalaggregation measures (unweighted averages, medians, and GNP-weighted averages), anda large set of saving-related variables and potential saving determinants.

Among the main findings reported here are the following. The worlds averagesaving rate has declined for the last two decades but country saving rates exhibit a largedispersion, especially in developing regions. While in a small number of developingcountries saving has risen substantially (together with growth), saving has stagnated oreven declined in most other developing countries. Countries that save more exhibit, onaverage, more stable saving rates over time. Country saving rates tend to rise with percapita real income levels and growth rates, domestic investment, public saving, moneystocks, and private financial wealth. However substantial heterogeneity in the correlationbetween saving and related variables is observed between industrial and developingcountries.

References

Feldstein, M. and C. Horioka (1980): Domestic Savings and International CapitalFlows, Economic Journal 90: 314-329.

Loayza, N., H. Lpez, K. Schmidt-Hebbel and L. Servn (1998): The World SavingData Base, World Bank manuscript, January.

Loayza, N., K. Schmidt-Hebbel, and L. Servn (1998): What drives Saving across theWorld?, World Bank manuscript, September.

Masson, Bayoumi, and Samiei (1996): Saving Behavior in Industrial and DevelopingCountries, International Monetary Fund.

Schmidt-Hebbel, K. and L. Servn (1997): Saving across the World: Puzzles andPolicies, World Bank Discussion Paper No. 354.

18

Schmidt-Hebbel. K. and L. Servn (eds.) (1999): The Economics of Saving and Growth.Cambridge University Press, forthcoming.

List of Tables

1.1 Gross National Saving/Gross National Disposable Income ratios by CountryRegions/Groups and Periods (Fixed Sample)

1.2 Gross National Saving/Gross National Disposable Income ratios by CountryRegions/Groups and Periods (Full Sample)

2.1 Private and Public Saving ratios to GNDI (regional medians) by Public SavingMeasures and Periods (Fixed Sample)

2.2 Net Capital Gains to the Government due to Inflation (regional medians) by Periods(Fixed Sample)

2.3 Gross Private Saving/Gross Private Disposable Income by Country Regions/Groupsand Periods (adjusted, public sector definition) (Fixed Sample)

3.1 Household and Corporate Saving ratios to GPDI (regional medians) by Periods(Household and Corporate Sample)

3.2 Household Saving ratio to GPDI by Country Regions/Groups and Periods(Household Sample)

4.1 Real Private Consumption/Real GDP ratios by Country Regions/Groups and Periods(Fixed Sample)

4.2 Real Government Consumption/Real GDP ratios by Country Regions/Groups andPeriods (Fixed Sample)

4.3 Real Domestic Investment/Real GDP ratios by Country Regions/Groups and Periods(Fixed Sample)

5. Cross-country and panel correlations between GNS/GNDI and saving-related variablesby Country Regions (Full sample)

6. Cross-country and panel correlations between GPS/GPDI (consistent with non-adjusted CG) and saving-related variables by Country Regions (Full sample)

7. Cross-country and panel correlations between GPS/GPDI (consistent with adjustedPS) and saving-related variables by Country Regions (Full sample)

8. Cross-country and panel correlations between HHS/GPDI and saving-related variablesby Country Regions (Full sample)

1

9. Cross-country and panel correlations among saving-related variables in the World(Full sample)

SAVING IN THE WORLD: Annex of Figures

Norman LoayzaHumberto Lpez

Klaus Schmidt-HebbelLuis Servn

November 1998

This Annex to our paper Saving in the World: Facts, Trends, and Correlationspresents figures for time trends and bi-variate correlations that complement theinformation in the tables included in the main text.

Figures 1.0 through 1.4 depict time charts for Gross National Saving ratios toGross National Disposable Income (GNS/GPDI) for country groups (for 1970 through1994, series 1.1 and 1.3) and country regions (for 1960 or later through 1994, series 1.2and 1.4). Fixed country samples are considered in series 1.1 and 1.2, and full countrysamples are considered in series 1.3 and 1.4. Medians are depicted in figures 1.i,unweighted averages in figures 1.ib, and GNP-weighted averages are depicted in figures1.ic, for i=1,..4. Figure 1.5 depicts the bi-variate cross-country relation between nationalsaving rates and the standard deviation the various saving measures and various saving-related variables for the world sample.

Figures 2.0 through 2.8 depict time charts for Gross Public and Gross PrivateSaving ratios according to various definitions of public saving, for country groups andcountry regions. Figure 3.1 shows a time chart for net corporate and household saving inindustrial and developing countries. Figures 4.1 through 4.3b depict time charts forprivate consumption, public consumption, and domestic investment ratios to GDP.

Figures 1.5, 2.10, 2.11, and 3.2 depict bi-variate cross-country relations betweenvarious saving rates and their standard deviations for the world sample.

Figures 5.1 through 8.11 depict bi-variate cross-country relations between varioussaving measures and various saving-related variables for the world sample. Each figuredepicts two correlations (for the OECD and LDC samples) between average long-run

country observations for a given saving measure and a saving-related variable. The linesrepresent the fitted values of an OLS regression for the corresponding sample.

1

Annex of Figures, Table of Contents

Figure: Title:

1.0 GROSS NATIONAL SAVING RATES BY WORLD REGIONS: Gross national saving rateincluding net current transfers as percent of gross national disposable income (Regional medians atcurrent prices, 1965-1994)

1.1 GROSS NATIONAL SAVING RATES BY COUNTRY GROUPS: Gross national saving aspercent of gross national disposable income (Group medians at current prices, fixed countrysample, 1965-1994)

1.1b GROSS NATIONAL SAVING RATES BY COUNTRY GROUPS: Gross national saving aspercent of gross national disposable income (Unweighted group averages at current prices, fixedcountry sample, 1965-1994)

1.1c GROSS NATIONAL SAVING RATES BY COUNTRY GROUPS: Gross national saving aspercent of gross national disposable income (GNP-weighted group averages, fixed country sample,1965-1994)

1.2 GROSS NATIONAL SAVING RATES BY WORLD REGIONS: Gross national saving as percentof gross national disposable income (Regional medians at current prices, fixed country sample,1965-1994)

1.2b GROSS NATIONAL SAVING RATES BY WORLD REGIONS: Gross national saving as percentof gross national disposable income (Unweighted regional averages at current prices, fixed countrysample, 1965-1994)

1.2c GROSS NATIONAL SAVING RATES BY WORLD REGIONS: Gross national saving as percentof gross national disposable income (GNP-weighted regional averages, fixed country sample,1965-1994)

1.3 GROSS NATIONAL SAVING RATES BY COUNTRY GROUPS: Gross national saving aspercent of gross national disposable income (Group medians at current prices, full sample,1965-1994)

1.3b GROSS NATIONAL SAVING RATES BY COUNTRY GROUPS: Gross national saving aspercent of gross national disposable income (Unweighted group averages at current prices, fullsample, 1965-1994)

1.3c GROSS NATIONAL SAVING RATES BY COUNTRY GROUPS: Gross national saving aspercent of gross national disposable income (GNP-weighted group averages at current prices, fullsample, 1965-1994)

1.4 GROSS NATIONAL SAVING RATES BY WORLD REGIONS: Gross national saving as percentof gross national disposable income (Regional medians at current prices, full sample, 1965-1994)

1.4b GROSS NATIONAL SAVING RATES BY WORLD REGIONS: Gross national saving as percentof gross national disposable income (Unweighted regional averages at current prices, full sample,1965-1994)

2

1.4c GROSS NATIONAL SAVING RATES BY WORLD REGIONS: Gross national saving as percentof gross national disposable income (GNP-weighted regional averages at current prices, fullsample, 1965-1994)

1.5 GROSS NATIONAL SAVING RATES LEVELS AND VARIATION: Gross national savingrate as percent of gross national disposable income and the standard deviation of the gross nationalsaving rate (Country averages at current prices, fixed sample, 1965-1994)

2.0 GROSS PRIVATE SAVING RATES BY WORLD REGIONS: Gross private saving rate aspercent of gross private disposable income (Adjusted, public sector definition; Regional mediansat current prices, 1965-1994)

2.1 ALTERNATIVE MEASURES OF PUBLIC SAVING IN DEVELOPING COUNTRIES (Percentof gross national disposable income, fixed country sample, 1970-1994)

2.2 ALTERNATIVE MEASURES OF PUBLIC SAVING IN INDUSTRIAL COUNTRIES (Percentof gross national disposable income, fixed country sample, 1970-1994)

2.3 ALTERNATIVE MEASURES OF PRIVATE SAVING IN INDUSTRIAL AND DEVELOPINGCOUNTRIES (Percent of gross private disposable income; Medians of fixed country sample,1970-1994)

2.4 COMPOSITION OF GROSS NATIONAL SAVING: Public and private saving as percent of grossnational disposable income (Unadjusted, central government definition; Medians of fixed countrysample, 1970-1994)

2.5 COMPOSITION OF GROSS NATIONAL SAVING: Public and private saving as percent of grossnational disposable income (Adjusted, public sector definition; Medians of fixed country sample,1970-1994)

2.6 GROSS PRIVATE SAVING RATES BY COUNTRY GROUPS: Gross private saving as percentof gross private disposable income (Adjusted, public sector definition; Group medians at currentprices, fixed country sample, 1970-1994)

2.7 GROSS PRIVATE SAVING RATES BY WORLD REGIONS: Gross private saving as percent ofgross private disposable income (Adjusted, public sector definition; Group medians at currentprices, fixed country sample, 1970-1994)

2.8 GROSS PRIVATE SAVING RATES BY COUNTRY GROUPS: Gross private saving as percentof gross private disposable income (Adjusted, public sector definition; Group medians at currentprices, full country sample, 1970-1994)

2.9 GROSS PRIVATE SAVING RATES BY WORLD REGIONS: Gross private saving as percent ofgross private disposable income (Adjusted, public sector definition; Group medians at currentprices, full country sample, 1970-1994)

2.10 PRIVATE SAVING RATES LEVELS AND VARIATION: Private saving rate as percent ofgross private disposable income and the standard deviation of the private saving rate (Unadjusted,central government definition; Country averages at current prices, fixed sample)

2.11 PRIVATE SAVING RATES LEVELS AND VARIATION: Private saving rate as percent ofgross private disposable income and the standard deviation of the private saving rate (Adjusted,public sector definition; Country averages at current prices, fixed sample)

3

3.1 COMPOSITION OF PRIVATE SAVING: Net household saving and net corporate saving, ratiosto private disposable income (Net household and corporate saving data sample, 1965-1992)

3.2 HOUSEHOLD SAVING RATES LEVELS AND VARIATION: Household saving as percent ofgross private disposable income and the standard deviation of the household saving rate (Nethousehold data sample)

4.1 PRIVATE CONSUMPTION/GDP RATIOS BY COUNTRY GROUPS (Group medians atconstant 1987 prices, fixed country sample, 1970-1994)

4.1b PRIVATE CONSUMPTION/GDP RATIOS BY WORLD REGIONS (Regional medians atconstant 1987 prices, fixed country sample, 1970-1994)

4.2 PUBLIC CONSUMPTION/GDP RATIOS BY COUNTRY GROUPS (Group medians at constant1987 prices, fixed country sample, 1970-1994)

4.2b PUBLIC CONSUMPTION/GDP RATIOS BY WORLD REGIONS (Regional medians at constant1987 prices, fixed country sample, 1970-1994)

4.3 DOMESTIC INVESTMENT/GDP RATIOS BY COUNTRY GROUPS (Group medians atconstant 1987 prices, fixed country sample, 1970-1994)

4.3b DOMESTIC INVESTMENT/GDP RATIOS BY WORLD REGIONS (Regional medians atconstant prices, fixed country sample, 1970-1994)

5.1 LONG-TERM NATIONAL SAVING AND REAL INCOME: Gross national saving rate and realper capita national disposable income (Country averages, 1965-1995)

5.2 LONG-TERM NATIONAL SAVING AND REAL INCOME GROWTH: Gross national savingrate and growth of real per capita national disposable income (Country averages, 1965-1995)

5.3 LONG-TERM NATIONAL SAVING AND DOMESTIC INVESTMENT: Gross national savingand gross domestic investment ratios to national disposable income (Country averages, 1965-1995)

5.4a LONG-TERM NATIONAL SAVING AND PUBLIC SAVING: Gross national saving and grosspublic saving ratios to national disposable income (Unadjusted, central government definition;Country averages, 1965-1995)

5.4b LONG-TERM NATIONAL SAVING AND PUBLIC SAVING: Gross national saving and grosspublic saving ratios to national disposable income (Adjusted, public sector definition; Countryaverages, 1965-1995)

5.5 LONG-TERM NATIONAL SAVING AND REAL INTEREST RATE: Gross national saving rateand average of ex-ante and ex-post real interest rates (Country averages, 1965-1995)

5.6 LONG-TERM NATIONAL SAVING AND INFLATION: Gross national saving and ex-post (log)inflation rate (Country averages, 1965-1995)

5.7 LONG-TERM NATIONAL SAVING AND MONEY STOCK: National saving and broad money(M2, year average), ratios to gross national disposable income (Country averages, 1965-1995)

5.8 LONG-TERM NATIONAL SAVING AND PRIVATE WEALTH: Gross national saving and netprivate financial wealth (year average), ratios to gross national disposable income (Countryaverages, 1965-1995)

4

5.9 LONG-TERM NATIONAL SAVING AND DOMESTIC CREDIT FLOWS: Gross nationalsaving and domestic credit flows, ratios to gross national disposable income (Country averages,1965-1995)

5.10 LONG-TERM NATIONAL SAVING AND SOCIAL SECURITY: National saving rate and socialsecurity expenditure relative to public expenditure (Country averages, 1965-1995)

5.11 LONG-TERM NATIONAL SAVING AND TOTAL DEPENDENCY RATIO: National savingrate and population aged 65 and over and 15 and under relative to working-age population(Country averages, 1965-1995)

5.12 LONG-TERM NATIONAL SAVING AND OLD DEPENDENCY RATIO: National saving rateand population aged 65 and over relative to working-age population (Country averages, 1965-1995)

5.13 LONG-TERM NATIONAL SAVING AND YOUNG DEPENDENCY RATIO: National savingrate and population aged 15 and under relative to working-age population (Country averages,1965-1995)

5.14 LONG-TERM NATIONAL SAVING AND URBANIZATION: National saving rate and urbanpopulation relative to total (Country averages, 1965-1995)

5.15 LONG-TERM NATIONAL SAVING AND INCOME DISTRIBUTION: National saving ratioand Gini coefficient (Country averages, 1965-1995).

5.16 LONG-TERM REAL GROSS DOMESTIC INVESTMENT AND REAL PER CAPITA GDPGROWTH: Real gross domestic investment ratio to real GDP and growth of real per capita GDP(Country averages, 1965-1995).

6.1 LONG-TERM PRIVATE SAVING AND REAL PRIVATE INCOME: Gross private saving rateand real per capita private disposable income (Unadjusted, central government definition; Countryaverages, 1965-1995)

6.2 LONG-TERM PRIVATE SAVING AND REAL PRIVATE INCOME GROWTH: Gross privatesaving rate and growth rate of real per capita private disposable income (Unadjusted, centralgovernment definition; Country averages, 1965-1995)

6.3 LONG-TERM GROSS PRIVATE AND PUBLIC SAVING: Gross private saving rate and grosspublic saving rate (Unadjusted, central government definition; Country averages, 1965-1995)

6.4 LONG-TERM GROSS PRIVATE SAVING AND REAL INTEREST RATE: Gross private savingrate and real interest rate (Unadjusted, central government definition; Country averages, 1965-1995)

6.5 LONG-TERM GROSS PRIVATE SAVING AND MONEY STOCK: Gross private saving rateand broad money (M2, year average), ratios to gross private disposable income (Unadjusted,central government definition; Country averages, 1965-1995)

6.6 LONG-TERM GROSS PRIVATE SAVING AND DOMESTIC CREDIT FLOWS: Gross privatesaving rate and domestic credit flows, ratios to gross private disposable income (Unadjusted,central government definition; Country averages, 1965-1995)

6.7 LONG-TERM GROSS PRIVATE SAVING AND OLD AGE DEPENDENCY RATIO: Grossprivate saving rate and population aged 65 and over relative to working-age population(Unadjusted, central government definition; Country averages, 1965-1995)

5

6.8 LONG-TERM GROSS PRIVATE SAVING AND YOUNG DEPENDENCY RATIO: Grossprivate saving rate and population aged 15 and under relative to working-age population(Unadjusted, central government definition; Country averages, 1965-1995)

6.9 LONG-TERM GROSS PRIVATE SAVING AND URBANIZATION RATE: Gross private savingrate and urbanization rate (Unadjusted, central government definition; Country averages, 1965-1995)

7.1 LONG-TERM PRIVATE SAVING AND REAL PRIVATE INCOME: Gross private saving rateand real per capita private disposable income (Adjusted, public sector definition; Countryaverages, 1965-1995)

7.2 LONG-TERM GROSS PRIVATE SAVING AND REAL PRIVATE INCOME GROWTH: Grossprivate saving rate and growth rate of real per capita private disposable income (Adjusted, publicsector definition; Country averages, 1965-1995)

7.3 LONG-TERM GROSS PRIVATE AND PUBLIC SAVING: Gross private saving rate and grosspublic saving rate (Adjusted, public sector definition; Country averages, 1965-1995)

7.4 LONG-TERM GROSS PRIVATE SAVING AND REAL INTEREST RATE: Gross private savingrate and real interest rate (Adjusted, public sector definition; Country averages, 1965-1995)

7.5 LONG-TERM GROSS PRIVATE SAVING AND MONEY STOCK: Gross private saving rateand broad money (M2, year average), ratios to gross private disposable income (Adjusted, publicsector definition; Country averages, 1965-1995)

7.6 LONG-TERM GROSS PRIVATE SAVING AND DOMESTIC CREDIT FLOWS: Gross privatesaving rate and domestic credit flows, ratios to gross private disposable income (Adjusted, publicsector definition; Country averages, 1965-1995)

7.7 LONG-TERM GROSS PRIVATE SAVING AND OLD AGE DEPENDENCY RATIO: Grossprivate saving rate and population aged 65 and over relative to working-age population (Adjusted,public sector definition; Country averages, 1965-1995)

7.8 LONG-TERM GROSS PRIVATE SAVING AND YOUNG AGE DEPENDENCY RATIO: Grossprivate saving rate and population aged 15 and under relative to working-age population(Adjusted, public sector definition; Country averages, 1965-1995)

7.9 LONG-TERM GROSS PRIVATE SAVING AND URBANIZATION RATE: Gross private savingrate and urbanization rate (Adjusted, public sector definition; Country averages, 1965-1995)

8.1 LONG-TERM NET HOUSEHOLD SAVING AND REAL PRIVATE INCOME: Net householdsaving rate and real per capita private disposable income (Unadjusted, central governmentdefinition; All countries, 1965-1995)

8.2 LONG-TERM NET HOUSEHOLD SAVING AND REAL PRIVATE INCOME GROWTH: Nethousehold saving rate and growth of real per capita private disposable income (Unadjusted, centralgovernment definition; All countries, 1965-1995)

8.3 LONG-TERM NET HOUSEHOLD SAVING AND PUBLIC SECTOR SAVING: Net householdsaving and public sector saving, as percent of gross private disposable income (Adjusted, publicsector definition; Country averages, 1965-1995)

6

8.4 LONG-TERM NET HOUSEHOLD SAVING AND CORPORATE SAVING: Net householdsaving and net corporate saving ratios to private disposable income (Unadjusted, centralgovernment definition; All countries, 1965-1995)

8.5 LONG-TERM NET HOUSEHOLD SAVING AND REAL INTEREST RATE: Net householdsaving rate and real interest rate (Country averages, 1965-1995)

8.6 LONG-TERM NET HOUSEHOLD SAVING AND MONEY STOCK: Net household saving rateand broad money (M2, year average), ratios to gross private disposable income (Country averages,1965-1995)

8.7 LONG-TERM NET HOUSEHOLD SAVING AND DOMESTIC CREDIT FLOWS: Nethousehold saving and domestic credit flows, ratios to gross private disposable income (Countryaverages, 1965-1995)

8.8 LONG-TERM NET HOUSEHOLD SAVING AND OLD AGE DEPENDENCY RATIO: Nethousehold saving rate and population aged 65 and over relative to working-age population(Country averages, 1965-1995)

8.9 LONG-TERM NET HOUSEHOLD SAVING AND YOUNG DEPENDENCY RATIO: Nethousehold saving rate and population aged 15 and under relative to working-age population(Country averages, 1965-1995)

8.10 LONG-TERM NET HOUSEHOLD SAVING AND URBANIZATION RATE: Net householdsaving rate and urbanization rate (Adjusted, public sector definition; Country averages, 1965-1995)

Figure 1.0

China

EAP

MENA

INDSA

SSA

LAC

1965-73

1974-84

1985-940

5

10

15

20

25

30

35

40

GN

S/G

ND

I (%

)

GROSS NATIONAL SAVING RATES BY WORLD REGIONSGross national saving rate including net current transfers as percent of gross national disposable income

(Regional medians at current prices, 1965-1994)

Figure 1.1

GROSS NATIONAL SAVING RATES BY COUNTRY GROUPSGross national saving as percent of gross national disposable income

(Group medians at current prices, fixed country sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Med

ian

GN

S/G

ND

I

China TAKEOFF otherLDC WORLD IND

Figure 1.1b


(Unweighted group averages at current prices, fixed country sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Ave

rag

e G

NS

/GN

DI


Figure 1.1c


(GNDI-weighted group averages, fixed country sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Wei

gh

ted

Ave

rag

e G

NS

/GN

DI


Figure 1.2

GROSS NATIONAL SAVING RATES BY WORLD REGIONSGross national saving as percent of gross national disposable income(Regional medians at current prices, fixed country sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Med

ian

GN

S/G

ND

I

China MENA EAP SA SSA LAC IND

Figure 1.2b

GROSS NATIONAL SAVING RATES BY WORLD REGIONSGross national saving as percent of gross national disposable income

(Unweighted regional averages at current prices, fixed country sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Ave

rag

e G

NS

/GN

DI


Figure 1.2c

GROSS NATIONAL SAVING RATES BY WORLD REGIONSGross national saving as percent of gross national disposable income(GNDI-weighted regional averages, fixed country sample, 1965-1994)

0%

10%

20%

30%

40%

50%

60%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Ave

rag

e G

NS

/GN

DI


Figure 1.3

GROSS NATIONAL SAVING RATES BY COUNTRY GROUPSGross national saving as a percentage of gross national disposable income

(Group medians at current prices, full sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Med

ian

GN

S/G

ND

I


Figure 1.3b

GROSS NATIONAL SAVING RATES BY COUNTRY GROUPSGross national saving as percent of gross national disposable income(Unweighted group averages at current prices, full sample, 1965-1994)

5%

10%

15%

20%

25%

30%

35%

40%

45%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Ave

rag

e G

NS

/GN

DI


Figure 1.3c


(GNDI-weighted group averages, full sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Wei

gh

ted

Ave

rag

e G

NS

/GN

DI


Figure 1.4


(Regional medians at current prices, full sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Med

ian

GN

S/G

ND

I


Figure 1.4b


(Unweighted regional averages at current prices, full sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Ave

rag

e G

NS

/GN

DI


Figure 1.4c


(GNDI-weighted regional averages, full sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993

Wei

gh

ted

Ave

rag

e G

NS

/GN

DI


Figure 1.5

GROSS NATIONAL SAVING RATES - LEVELS AND VARIATIONGross national saving rate as percent of gross national disposable income and the standard deviation of the

gross national saving rate(Country averages at current prices, fixed sample, 1965-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

0% 2% 4% 6% 8% 10% 12% 14% 16%

Standard Deviation of GNS/GNDI

Ave

rag

e G

NS

/GN

DI

LDC INDDeveloping Industrial

Figure 2.0

EAP

MENA

INDSA

SSA

LAC

1970-79

1980-89

1990-950

5

10

15

20

25

30

35

40

GP

riS

/GP

DI (

%)

GROSS PRIVATE SAVING RATES BY WORLD REGIONSGross private saving rate as percent of gross private disposable income

(Adjusted, public sector definition; Regional medians at current prices, 1965-1994)

Figure 2.1

ALTERNATIVE MEASURES OF PUBLIC SAVING IN DEVELOPING COUNTRIES(Percent of gross national disposable income, fixed country sample, 1970-1994)

0%

1%

2%

3%

4%

5%

6%

7%

8%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Pu

blic

Sav

ing

/GN

DI

CU PA PU CA

Figure 2.2

ALTERNATIVE MEASURES OF PUBLIC SAVING IN INDUSTRIAL COUNTRIES(Percent of gross national disposable income, fixed country sample, 1970-1994)

-4%

-2%

0%

2%

4%

6%

8%

10%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

PS

Sav

/GN

DI,

%

CU PA PU CA

Figure 2.3

ALTERNATIVE MEASURES OF PRIVATE SAVING IN INDUSTRIAL AND DEVELOPING COUNTRIES (Private saving as a percent of gross private disposable income; Medians of fixed country sample, 1970-1994)

10%

12%

14%

16%

18%

20%

22%

24%

26%

28%

30%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Pri

vate

Sav

ing

/GP

DI (

%)

CU_IND PA_IND CU_LDC PA_LDC

Figure 2.4

COMPOSITION OF GROSS NATIONAL SAVINGPublic and private saving as percent of gross national disposable income

(Unadjusted, central Government definition; Medians of fixed country sample, 1970-1994)

-0.05

0

0.05

0.1

0.15

0.2

0.25

0.3

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Pu

bic

an

d P

riva

te S

avin

g/G

ND

I (%

)

Pub_IND Priv_IND Pub_LDC Priv_LDC

Figure 2.5

COMPOSITION OF GROSS NATIONAL SAVINGPublic and private saving as percent of gross national disposable income

(Adjusted, public sector definition; Medians of fixed country sample, 1970-1994)

-5%

0%

5%

10%

15%

20%

25%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Pri

vate

Sav

ing

/GN

DI

Pub_IND Priv_IND Pub_LDC Priv_LDC

Figure 2.6

GROSS PRIVATE SAVING RATES BY COUNTRY GROUPSGross private saving as percent of gross private disposable income

(Adjusted, public sector definition; Group medians at current prices, fixed country sample, 1970-1994)

0%

5%

10%

15%

20%

25%

30%

35%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Pri

vate

Sav

ing

/GP

DI

TAKEOFF otherLDC WORLD IND

Figure 2.7

GROSS PRIVATE SAVING RATES BY WORLD REGIONSGross private saving as percent of gross private disposable income

(Adjusted, public sector definition; Group medians at current prices, fixed country sample, 1970-1994)

0%

5%

10%

15%

20%

25%

30%

35%

40%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Pri

vate

Sav

ing

/GP

DI

MENA EAP SA SSA LAC IND

Figure 2.8

GROSS PRIVATE SAVING RATES BY COUNTRY GROUPSGross private saving as percent of gross private disposable income

(Adjusted, public sector definition; Group medians at current prices, full country sample, 1970-1994)

0%

5%

10%

15%

20%

25%

30%

35%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Pri

vate

Sav

ing

/GP

DI

TAKEOFF otherLDC WORLD IND

Figure 2.9

GROSS PRIVATE SAVING RATES BY WORLD REGIONSGross private saving as percent of gross private disposable income

(Adjusted, public sector definition; Group medians at current prices, full country sample, 1970-1994)

0%

5%

10%

15%

20%

25%

30%

35%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Pri

vate

Sav

ing

/GP

DI

MENA EAP SA SSA LAC IND

Figure 2.10

PRIVATE SAVING RATES - LEVELS AND VARIATIONPrivate saving rate as percent of gross private disposable income & the standard deviation of the private saving

rate(Unadjusted, central government definition; Country averages at current prices, fixed sample)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Standard Deviation of GPriS/GPDI

Ave

rag

e G

Pri

S/G

PD

I


Figure 2.11

PRIVATE SAVING RATES - LEVELS AND VARIATIONPrivate saving rate as percent of gross private disposable income & the standard deviation of the private saving

rate(Adjusted, public sector definition; Country averages at current prices, fixed sample)

0%

5%

10%

15%

20%

25%

30%

35%

0% 5% 10% 15% 20% 25%

Standard Deviation of GPriS/GPDI

Ave

rag

e G

Pri

S/G

PD

I

LDC IND

Developing Industrial

Figure 3.1

COMPOSITION OF PRIVATE SAVINGNet household saving and net corporate saving, ratios to private

disposable income(Net household and corporate saving data sample, 1965-1992)

0%

2%

4%

6%

8%

10%

12%

14%

1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991

Co

rpo

rate

an

d H

ou

seh

old

Sav

ing

/ GP

DI (

%)

HH_IND CO_IND HH_LDC CO_LDC

Figure 3.2

HOUSEHOLD SAVING RATES - LEVELS AND VARIATIONHousehold saving as percent of gross private disposable income and the standard deviation of the household

saving rate(Net household data sample)

-5%

0%

5%

10%

15%

20%

0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

Standard Deviation of Net HHS/GPDI

Ave

rag

e N

et H

HS

/GP

DI

LDC IND


Figure 4.1

PRIVATE CONSUMPTION/ GDP RATIOS BY COUNTRY GROUPS(Group medians at constant 1987 prices, fixed country sample, 1970-1994)

40%

45%

50%

55%

60%

65%

70%

75%

80%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Rea

l Pri

vate

Co

nsu

mp

tio

n/R

eal G

DP


Figure 4.1b

PRIVATE CONSUMPTION/ GDP RATIOS BY WORLD REGIONS(Regional medians at constant 1987 prices, fixed country sample, 1970-1994)

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Rea

l Pri

vate

Co

nsu

mp

tio

n/ R

eal G

DP


Figure 4.2

PUBLIC CONSUMPTION/ GDP RATIOS BY COUNTRY GROUPS(Group medians at constant 1987 prices, fixed country sample, 1970-1994)

6%

8%

10%

12%

14%

16%

18%

20%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Rea

l Go

vern

men

t C

on

sum

pti

on

/Rea

l GD

P


Figure 4.2b

PUBLIC CONSUMPTION/GDP RATIOS BY WORLD REGIONS(Regional medians at constant 1987 prices, fixed country sample, 1970-1994)

6%

8%

10%

12%

14%

16%

18%

20%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Rea

l Go

vern

men

t C

on

sum

pti

on

/ Rea

l GD

P


Figure 4.3

DOMESTIC INVESTMENT/ GDP RATIOS BY COUNTRY GROUPS(Group medians at constant 1987 prices, fixed country sample, 1970-1994)

15%

20%

25%

30%

35%

40%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Rea

l GD

I/Rea

l GD

P


Figure 4.3b

DOMESTIC INVESTMENT/ GDP RATIOS BY WORLD REGIONS(Regional medians at constant prices, fixed country sample, 1970-1994)

10%

15%

20%

25%

30%

35%

40%

1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994

Med

ian

Rea

l GD

I/Rea

l GD

P


Figure 5.1

LONG-TERM NATIONAL SAVING AND REAL INCOMEGross national saving rate and real per capita national disposable income

(Country averages, 1965-1995)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000

Real GNDI Per Capita

GN

S/G

ND

I (%

)

LDC IND


Figure 5.2

LONG-TERM NATIONAL SAVING AND REAL INCOME GROWTHGross national saving rate and growth of real per capita national disposable income


0%

5%

10%

15%

20%

25%

30%

35%

40%

-0.1 -0.08 -0.06 -0.04 -0.02 0 0.02 0.04 0.06 0.08

Growth Rate of Real Per Capita GNDI (%)

GN

S/ G

ND

I (%

)

LDC IND


Figure 5.3

LONG-TERM NATIONAL SAVING AND DOMESTIC INVESTMENTGross national saving and gross domestic investment ratios to national disposable income


0%

5%

10%

15%

20%

25%

30%

35%

40%

10% 15% 20% 25% 30% 35% 40%

GDI/GNDI (%)

GN

S/ G

ND

I (%

)


Figure 5.4a

LONG-TERM NATIONAL SAVING AND PUBLIC SAVINGGross national saving and gross public saving ratios to national disposable income

(Unadjusted, central government definition; Country averages, 1965-1995)

0%

5%

10%

15%

20%

25%

30%

35%

40%

-15% -10% -5% 0% 5% 10% 15%

Unadjusted CCG Saving/GNDI (%)

GN

S/ G

ND

I (%

)


Figure 5.4b

LONG-TERM NATIONAL SAVING AND PUBLIC SAVINGGross national saving and gross public saving ratios to national disposable income

(Adjusted, public sector definition; Country averages, 1965-1995)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

-5% 0% 5% 10% 15% 20%

PS Saving/ GNDI (%)

GN

S/ G

ND

I (%

)


Figure 5.5

LONG-TERM NATIONAL SAVING AND REAL INTEREST RATEGross national saving rate and average of ex-ante and ex-post real interest rates


0%

5%

10%

15%

20%

25%

30%

35%

40%

-50% -40% -30% -20% -10% 0% 10% 20% 30% 40%

Real Interest Rate

GN

S/G

ND

I (%

)


Figure 5.6

LONG-TERM NATIONAL SAVING AND INFLATIONGross national saving and ex-post (log) inflation rate


0%

5%

10%

15%

20%

25%

30%

35%

40%

0% 20% 40% 60% 80% 100% 120%

Inflation rate

GN

S/ G

ND

I (%

)


Figure 5.7

LONG-TERM NATIONAL SAVING AND MONEY STOCKNational saving and broad money (M2, year average), ratios to gross national disposable income


0%

5%

10%

15%

20%

25%

30%

35%

40%

0% 20% 40% 60% 80% 100% 120%

M2/GNDI (%)

GN

S/ G

ND

I (%

)

LDC IND


Figure 5.8

LONG-TERM NATIONAL SAVING AND PRIVATE WEALTHGross national saving and net private financial wealth (year average), ratios to gross national disposable income


0%

5%

10%

15%

20%

25%

30%

35%

40%

-100% -50% 0% 50% 100% 150% 200% 250% 300%

Private Financial Wealth/GNDI (%)

GN

S/ G

ND

I (%

)


Figure 5.9

LONG-TERM NATIONAL SAVING AND DOMESTIC CREDIT FLOWSGross national saving and domestic credit flows, ratios to gross national disposable income


0%

5%

10%

15%

20%

25%

30%

35%

40%

-5% 0% 5% 10% 15% 20% 25%

Domestic Credit Flow/GNDI (%)

GN

S/G

ND

I (%

)


Figure 5.10

LONG-TERM NATIONAL SAVING AND SOCIAL SECURITYNational saving rate and social security expenditure relative to public expenditure


0%

5%

10%

15%

20%

25%

30%

35%

40%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Public Social Security (% of Public Expenditure)

GN

S/ G

ND

I (%

)


Figure 5.11

LONG-TERM NATIONAL SAVING AND TOTAL DEPENDENCY RATIONational saving rate and population aged 65 and over and 15 and under relative to working age population


0%

5%

10%

15%

20%

25%

30%

35%

40%

40% 50% 60% 70% 80% 90% 100% 110% 120%

Total Age Dependency Ratio

GN

S/G

ND

I (%

)


Figure 5.12

LONG-TERM NATIONAL SAVING AND OLD DEPENDENCY RATIONational saving ratio and population aged 65 and over relative to working-age population


0%

5%

10%

15%

20%

25%

30%

35%

40%

0% 5% 10% 15% 20% 25% 30%

Old Dependency Ratio

GN

S/ G

ND

I (%

)


Figure 5.13

LONG-TERM NATIONAL SAVING AND YOUNG DEPENDENCY RATIONational saving ratio and population aged 15 and under relative to working-age population


0%

5%

10%

15%

20%

25%

30%

35%

40%

0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 1.1

Young Dependency Ratio

GN

S/ G

ND

I (%

)


Figure 5.14

LONG-TERM NATIONAL SAVING AND URBANIZATIONNational saving ratio and urban population relative to total


0%

5%

10%

15%

20%

25%

30%

35%

40%

0% 20% 40% 60% 80% 100%

Urban Population Ratio

GN

S/ G

ND

I (%

)


Figure 5.15

LONG-TERM NATIONAL SAVING AND INCOME DISTRIBUTIONNational saving ratio and Gini coefficient


0%

5%

10%

15%

20%

25%

30%

35%

40%

25 30 35 40 45 50 55 60 65

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