Cover IMF Working Papers
What Explains Private Saving in Mexico?
Author: Mr. Andrew J Swiston and Mr. Ales Bulir
Series:
IMF Working Papers
Volume/Issue:
Volume 2006: Issue 191
Language:
English
Publication Date:
01 Aug 2006
DOI:
https://doi.org/10.5089/9781451864519.001
ISBN:
9781451864519
ISSN:
1018-5941
Pages:
30
Keywords:
WP; saving; private saving; external saving; investment
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (245.8 KB) Download Epub
This paper examines the factors influencing Mexico's private saving rate. Cross-country analysis finds that Mexico's private saving is somewhat higher than could be explained by its fundamentals, but lower than in the average country in the sample. This analysis suggests that Mexico's greater reliance on external saving, its relatively high population dependency ratio, and its less developed financial system have been the main factors holding back private saving. Time-series analysis finds that movements in private saving have not been associated with similar shifts in investment, as changes in public saving and external saving have tended to offset movements in private saving. This is consistent with the direction of causality being from investment to saving and suggests that policy measures should focus on creating conditions favorable to increased investment.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund