Importance Of Household Saving

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Mentioning regarding of saving which are essential for economics unit like household government and firm. Sonuga-Barke and Webley (1993) argue that saving is defined in terms of the quality of a set of actions (going to the counter and depositing money), made in relation to one or other institutions (bank or building society) (Furnham, 1999). Here, we will be focusing more on household saving. Over so many decades pass, many developing countries had increased their saving which has been related to the income that is received by household. As we have known, household make saving is to basically achieve their financial goal. It is either to own and buy a house, new car, or for retirement purposes. Those goals can be achieved by saving money…show more content…
1.3 Objective of study

The objective of this paper is:

1. Determinants of household saving
2. Implication of Household saving
3. Identify the trends of household between Malaysia and China

1.4 Significance of study

The investigation to establish the underlying factors responsible for household saving based on information found.

1.5 Overview
Overview on this paper are include firstly introduction, which explained a on household saving. The introduction include background, statement of problem, and objective of this study. Secondly, I will be explaining about the factor that influence the household saving. Next section is the implication of household saving. Other than that, the paper also contain discussion which is a case study on household saving. Last section is the conclusion and suggestion for future studies.

2.0 Literature Review

“Aasim M. Hussain”
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The increase of household income will boost household saving which can contribute to national saving. (Kraay, 2000)

“BoŜena Frączek” (2011)
Income is the most crucial element that had been the main determinant for household to save. It identify the relationship between household saving and their main determinants. It is also identify relationship between saving and economic growth. The result found that, factor and impact on household saving can be vary in many countries, where else the relationship between saving and economic growth are having differences. (Frączek, 2011)

“Charles Yuji Horioka & Junmin Wan” (2007)
It is an analysis of the determinants of the household saving rate using a life cycle model. Findings that household saving rate has been high and rising and that the main determinants of variations over time and over space therein are the lagged saving rate, the income growth rate. (Wan,

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