Macroeconomic Determinants of Household Savings in Ukraine

Information
Title: Macroeconomic Determinants of Household Savings in Ukraine
Issue: Vol. 8, No 3, 2015
Published date: 20-10-2015 (print) / 20-10-2015 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Mykola Zhuk
Keywords: household savings, gross domestic savings, Ukraine, error correction model, unit root
DOI: 10.14254/2071-789X.2015/8-3/3
DOAJ: https://doaj.org/article/45aecab005004446a471a38bdc904f2f
Language: English
Pages: 41-54 (14)
JEL classification: C22, E21
Website: https://www.economics-sociology.eu/?346,en_macroeconomic-determinants-of-household-savings-in-ukraine
File https://www.economics-sociology.eu/files/ES_8_3_Zhuk.pdf
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Abstract

The article elaborates on the issue of household savings in Ukraine and investigates the most significant macroeconomic indicators that influence their formation. The research also focuses on testing the hypothesis of structural breaks in formation of household savings in Ukraine after the World financial crisis. Formation process of household savings was studied with using the econometric modeling, particularly a multiple linear regression model with an error correction term. Estimated model demonstrated adequacy, stability as well as good performance and could be used for forecasting. Our results showed that household consumption expenditures and gross national income were the most significant macroeconomic determinants of household savings in Ukraine. In contrast to expectations, hypothesis testing indicated structural break in formation of household savings in Ukraine only in 2010.