Saving mobilization in Africa : processes, institutions and cultural factors

Abstract

The objective of this paper is to review the theoretical aspects of saving both at macro economic and micro-economic levels and to examine the available evidence in order to draw policy lessons that are particularly relevant for African economies. It will, therefore, attempt to document the main theoretical linkages of saving to major macro-economic aggregates and the factors that determine saving at the micro-economic or household level. The remainder of the paper is organized as follows: After examining measurement problems and saving trends in Sub-Saharan Africa, relative to other regions, in the remainder of this sub section, section Two presents the theoretical determinants of saving. Section Three reviews the empirical evidence by focusing mainly on Sub-Saharan Africa. And finally section Four presents summary and the policy implications of the theory and the empirical evidence outlined in the paper.