Low Savings Rates in the Economic Community of West African States (Ecowas): The Role of the Political Instability-Income Interaction

• Authors: Nurudeen Abu , Mohd Zaini Abd Karim , Mukhriz Izraf Azman Aziz
• Languages of publication: EN

Abstracts

EN

This paper employs PCSE, OLS and TSLS with random effects to investigate the impact of the political instabilityincome interaction on savings in ECOWAS countries during the period 1996-2012. The empirical evidence illustrates that higher political stability is associated with higher savings and income levels moderate the adverse effect of political instability on savings, indicating that the impact of political instability on savings is higher in low income ECOWAS countries, but lesser at higher levels of income. The paper recommends the promotion of political stability via increases in incomes to raise savings in the ECOWAS region.

Keywords

EN

savings; political instability

• Publisher: Sciendo
• Journal: South East European Journal of Economics and Business
• Year: 2014
• Volume: 8
• Issue: 2
• Pages: 53-63

Dates

published

2014-11-01

online

2014-11-20

Contributors

author

Nurudeen Abu

• Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia

author

Mohd Zaini Abd Karim

• Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia

author

Mukhriz Izraf Azman Aziz

• School of Economics, Finance and Banking, Universiti Utara Malaysia

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Identifiers

DOI

10.2478/jeb-2013-0010