Microeconomic Determinants of Household Saving Behaviors: The Research Study of Taulka Moro, District Naushehro Feroze, Sindh

Abstract

The economic growth and development are depended upon the saving ability of a country. Saving is a portion of instant income that is ready to be invested. The fundamental factors i.e., investment, employment and production are preceded by accumulated saving and same is regarded as a base of capital stock. National saving comprises-of two components Public and private saving. Household saving is a major and active factor of private saving. Henceforth, this study explores the major micro factors of household saving behaviours in Taulka Moro District Naushehro Feroze. Observing the risk exposures from currency and economic ups and downs due to dependency upon external saving, so many researchers have suggested and focused on increasing domestic savings for reducing severity, spreading circle of poverty and stability in developing countries. The household saving behaviors have been analyzed by this research study in Taulka Moro District Naushehro Feroze. Primary data was collected through multistage cluster sampling. Questionnaire was prepared with consistency and reliability towards the objectives. The sample of 397 households collected from selected 18 blocks of study area. Analysis was made through ordinal logistic regression method for finding the microeconomic determinants towards households saving behaviours in Taulka Moro District Naushehro Feroze. Following theories "absolute income hypothesis, permanent income hypothesis and life cycle hypothesis" were observed in present thesis in intention to estimate and to draw the conclusions about the household saving that household saving increased in according with income and wealth and decreases with the levels of dependency, expenses and age. Male found headed households at majority but saving attitude observed excessive in female respondents, their saving levels are insignificant. Maximum households living in single family system, while the saving ratio of joint families is higher in comparison to neutral families. According to the study findings it is recommended that state or autonomous organizations should launch awareness campaign to discourage lending money on interest base and stimulate people to be the part of profitable ventures by their economic investments.