The determinant of household saving behaviour and their influence on economic development (1984-2013) / Siti Shawiah Juman

Saving is the amount of money that the consumer did not use to for transaction and services. Individual in Malaysia is not really care about the saving in their account especially the rural people because the main thing to be fulfil is the necessity, so they just save when they have more money or a balance of money that did not use to purchase things in their pocket. From the findings of this research it can be state that all the variables which are the gross domestic product, household expenditure, inflation rate and the interest rate is significant in explaining the relationship with the saving rate in Malaysia in the long run because the result of the data is less than 5% and 10%. The Johansen Cointegration test shows that the variable's has significant relationship in long run because both the test under the Johansen has 1 cointegration meaning that we can reject the null hyopthese because there is a long run relationship among the variables. Under the test of the causality, all the variables are unidirectional relationship in the variable which is the saving cause the expenditure which is it is significant at 5%. Meanwhile the saving cause inflation and the real interest rate causes saving are significant at 10%. Using the VECM, each variable need to be corrected at least 2% by each year.