Journal Press India^®

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This paper scrutinizes factors affecting gross savings in some selected economies using a fixed effects regression model. In order to avoid any possible biases from the Ordinary Least Squares Model, a long panel data supporting fixed effect regression model is used. The regressors considered are natural logarithm of GDP, Human Development Index (HDI), age dependency ratio, labor force participation rate, Gini index, and poverty headcount ratio at national poverty lines. The paper shows that, for developed economies, HDI and age dependency tend to explain and determine gross savings successfully but for developing economies a firm conclusion cannot be drawn.

Keywords

Panel data; Fixed effect model; Variance inflation factor (VIF); Gross savings; Regression; Multicollinearity.

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