The Long Run Sociodemographic Determinants of National Saving in the Countries of West African Economic and Monetary Union
Ariane Wakap Tchagang, Paul Brice Kenfac Dongmezo
Department of Ananlysis and Economic Policies, Ministry of Economy, Planning and Regional Development, Yaounde, Centre, Cameroon; Department of Demographic and Social Statistics, National Institute of Statistics, Yaounde, Centre, Cameroon

This paper studies issues relating to determinants of domestic savings in the countries of the West African Economic and Monetary Union (WAEMU). The basic objective of this study is to understand the main determinants of long-term domestic savings in the WAEMU countries and draw lessons from political and economic development, this in view of reducing poverty by 2015 according the Millennium Development Goals. Data used in this work are from developing countries of the World Bank and the African Development Bank. This study presents a preliminary theoretical analysis of the determinants of savings. Thereof, it is clear that the determinants of savings are multiple and controversial. The conventional view that interest rate determines the savings. On the other hand, Keynesian economists believe the savings as a residue, which slows economic activity more than it accelerates. Other factors, such as the life expectancy, dependency ratio, social background, beliefs, and education contribute also to explain the amount and structure of national savings. To understand the socio-demographic and economic factors that might explain national savings in the WAEMU countries, we did firstly the bound testing of Pesaran. Then using a Vector Error Correction Model, we established the relationship between savings rates and the variables that might explain it. Estimating the long-term relationship in each country shows that the rate of domestic savings may be influenced by many socio demographic factors. For example in Côte d'Ivoire, the savings rate in Côte d'Ivoire is positively associated with per capita gross domestic product, inflation running at 5%. By cons, it is negatively influenced by the dependency ratio and the rate of pay deposits at 5%.


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Keywords: Savings; Domestic savings; Long-run; Convergence

Biography: I'm WAKAP Tchagang Ariane, a young statistician working at the Ministry of Economy, Planning and Regional Development. I am Statistician Economist, diploma obtained at the National School of Statistics and Applied Economics of Abidjan, Côte d'Ivoire. I have also a General Studies Diploma in Mathematics from the University of Yaounde I. I am 26 Years old.