Understanding the determinants of saving in Ghana: does financial literacy matter?

Title: Understanding the determinants of saving in Ghana: does financial literacy matter?
Creator: Baidoo, Samuel Tawiah; Boateng, Elliot; Amponsah, Mary
Relation: Journal of International Development Vol. 30, Issue 5, p. 886-903
Publisher Link: http://dx.doi.org/10.1002/jid.3377
Publisher: John Wiley & Sons
Resource Type: journal article
Date: 2018
Description: Domestic savings remain low in Ghana despite several attempts to improve this situation. Whereas existing studies on private savings have identified several determinants, the role of financial literacy in saving decisions has not been explored. In this paper, we build on existing studies and provide evidence supporting our hypothesis that financial literacy is key to promoting domestic saving. The study relies mainly on primary data, and the binary probit regression model is employed as the estimation technique. Our results show that improving financial literacy among Ghanaians should be incorporated into the broad policy package aimed at increasing domestic saving which is a prerequisite for investment and subsequently sustainable economic growth.
Subject: domestic savings; financial literacy; sustainable economic growth; demographics; life cycle hypothesis; Ghana
Identifier: http://hdl.handle.net/1959.13/1421809
Identifier: uon:37769
Identifier: ISSN:0954-1748
Language: eng
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