Different Level of Financial Development and Individual's Decision Regarding Saving and Consumption

Authors(1) :-Hamidreza Saeedi

The main motivation of this study is to investigate the relationship between indicator of financial development and individual's daily decision regarding their final consumption and saving in a selected sample of South America countries. The method which used for this analysis is pooled regression and the data collected from ten different countries (Brazil, Argentina, Peru, Chile, Bolivia, Ecuador, Uruguay, Paraguay, Colombia, Venezuela) during 1995 and 2015. Finally, by analyzing the Stata results it will be clear that which variable has positive effect on the share of final consumption expenditure in GDP and which one has the negative effect and the significant and insignificant of these effects

Authors and Affiliations

Hamidreza Saeedi
Engineering Management, Politecnico di Milano, Milano, Italy

Final consumption expenditure, Growth rate of GDP, Panel data regression, Money, Real Interest Rate

  1. Keynes JM. The General Theory of Employment, Interest and Money, London; dt. Ubers. von Fritz Waeger Allgemeine Theorie der Beschäftigung, des Zinses und des Geldes, Berlin und München. 1936;10
  2. S.T. Khorasani and M Almasifard, "An Inventory Model with Quantity Discount Offer Policy for Perishable Goods in the Two-Level Supply Chain. Vol. 9, pp. 2828-2834, 2017.
  3. M. Almasifard , " An econometric analysis of financial development's effects on the share of final consumption expenditure in gross domestic product," M.S. thesis, Dept. Banking and Finance., Eastern Mediterranean University.,  Famagusta,  Cyprus, 2013.
  4. S. Ciftcioglu, and M. Almasifard, " The response of consumption to alternative measures of financial development and real interest rate in a sample of central and east European countries," Journal of Economics and development studies. vol. 3, pp. 1-6, June 2015.
  5. Sasan T. Khorasani, "Design-Driven Integrated-Comprehensive Model CDFS Strategic Relationships." ASME 2014 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference. American Society of Mechanical Engineers, 2014.
  6. E. K. K. Lartey, "A note on the effect of financial development on economic growth", vol. 17, Applied Economics Letters, 2010, pp. 685-687
  7. Financial sector assessment, A handbook, the World Bank, 2005.
  8. P. Aghion, P. Howitt and David Mayer-Foulkes, " The effect of financial development on convergence: theory and evidence.", vol. 120, Quarterly Journal of Economics, 2005, pp. 173-222.
  9. R. Kelley and G. Mavrotas. " Savings and financial sector development: panel cointegration evidence from Africa", val. 14, European Journal of Finance, 2008, pp. 563-581.
  10. Rethinking the Role of the state in Finance, (2013). Global financial development Report, the World Bank
  11. Levine, R. & Loayza, N. & Beck, T. (2000), "financial intermediation and growth: causality and causes", Journal of Monetary Economics, 46, 31–77
  12. Jain, T.R & Khan, O.P (2006-2007), Macroeconomic management, V.K(India) Enterprises.
  13. Mauro, P., (1998), "Corruption and the composition of government expenditure". Journal of Public Economics 69, 263–279
  14. M. Almasifard, M, Saeedi, "Financial Development and Consumption," International Conference on Education, Economics and Management Research (ICEEMR 2017), PP.  510-512, Vol. 95, Singapore, 2017.
  15. M. Almasifard, and S.T. Khorasani, "Relationship Between Domestic Production in Agricultural and Industrial Sectors and Purchasing Power by Controlling for International Trade Variables (Iran)," International Journal of Economics and Financial Issues, Vol. 7, PP. 244-253,2017

Publication Details

Published in : Volume 3 | Issue 6 | September-October 2017
Date of Publication : 2017-10-31
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 238-241
Manuscript Number : IJSRSET173655
Publisher : Technoscience Academy

Print ISSN : 2395-1990, Online ISSN : 2394-4099

Cite This Article :

Hamidreza Saeedi, " Different Level of Financial Development and Individual's Decision Regarding Saving and Consumption, International Journal of Scientific Research in Science, Engineering and Technology(IJSRSET), Print ISSN : 2395-1990, Online ISSN : 2394-4099, Volume 3, Issue 6, pp.238-241, September-October-2017.
Journal URL : http://ijsrset.com/IJSRSET173655

Article Preview