FAMILY SAVINGS OF THE WORKING POPULATION IN MINDANAO, PHILIPPINES
Abstract
The study was conducted to understand the saving behavior of the working population in Mindanao using the Family Income and Expenditure Survey (FIES) datasets covering the periods 2003 to 2015. The study determined the factors which influence the families to save using Tobit regression and compared the levels of family income, expenditures, and savings of the regions of Mindanao. The study revealed that the real value of family savings increases as the family head gets older, but it eventually declines as the head nears retirement age. Tobit estimates revealed that in Mindanao, the age of the family head, household tenure, wages from agricultural and non-agricultural activities, income from entrepreneurial activities and cash assistance from abroad positively influence families to save; while sex of the family head, educational attainment, and the number of young dependents negatively influence the families to save. Moreover, the family size, marital status and geospatial location of the family heads have shown both positive and negative influences on family savings for different years. Meanwhile, the ANOVA results revealed that in 2015 there were significant variations between and among the income, expenditure, and savings of families in all regions of Mindanao. However, the Tukey-Kramer HSD test revealed that family savings in some regions in Mindanao have statistically the same means such as the Zamboanga Peninsula and CARAGA, Northern Mindanao and Davao Region, and SOCCKSARGEN and ARMM, while other regions vary significantly from each other. Overall, the ANOVA results revealed that for 2015 the Davao Region has the highest mean family income and expenditure, while Northern Mindanao recorded the highest mean family savings. The ARMM region showed the least value of mean income, mean savings and mean expenditures of families among the regions of Mindanao.
JEL: C34, D14, D15, E21
Article visualizations:
Keywords
Full Text:
PDFReferences
Adam, A.J. and Agba, A.V. (2006). Conceptual issues on savings in Nigeria. Central Bank of Nigeria Bullion, 30(1), 40-51.
Bangko Sentral ng Pilipinas Consumer Expectation Survey (2018). Retrieved 18 November 2019 from http://www.bsp.gov.ph/publications/regular_consumer.asp
Bersales, G. and Mapa, D. (2008). Population dynamics and household savings: Evidence from the Philippines. Retrieved January 19, 2019, from www.pcpd.ph/uploads/publications/99MAPA_BERSALES_TPS.pdf
Browning, M. and Crossley, T. (2001). The Life-Cycle Model of Consumption and Saving. Journal of Economic Perspectives 15(3): 3-22.
Browning, M. and Lusardi, A. (1996). Household Saving: Micro Theories and Micro Facts, Journal of Economic Literature, 1797-1855.
Magda, K. (2015). Determinants of low savings rate in the USA: Prospects and Implications. International Journal of Finance and Economics Int. J. Fin. Econ.20: 328–340 (2015) Published online 1 September 2015 in Wiley Online Library. DOI: 10.1002/ijfe.1519
Mapa, D. and Bersales, L.G. (2006). Patterns and Determinants of Household Savings in the Philippines. Retrieved 8 February 2020 from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.495.1966andrep=rep1andtype=pdf
Nayak, S. (2013). Determinants and pattern of saving behavior in rural households of western Odisha, A thesis submitted for the partial fulfillment of the master degree in development studies. National Institute of Technology, India, 25-28
Orbeta, A. (2005). Poverty, Vulnerability and Family Size: Evidence from the Philippines. ADB Institute Discussion Paper No. 68. Retrieved from October 31, 2019, from https://www.adb.org/sites/default/files/publication/156684/adbi-dp47.pdf
Philippine Development Plan (2040). National Economic and Development Authority. Retrieved 10 December 2010 from http://www.neda.gov.ph/wp-content/uploads/2017/12/Abridged-PDP-2017-2022_Final.pdf
Romer, P. (1986). Increasing returns and long-run growth. Journal of Political Economy. Retrieved March 7, 2019 from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.589.3348andrep=rep1andtype=pdf
Shaw, E. (1973). Financial deepening in Economic Development, Oxford University Press, New York. Vol. 29, No. 4, pp. 1345-1348
Solow, R. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65-94
Todaro, M. and Smith, S. (2017). Economic development (12th ed.). George Washington University, United States of America.
DOI: http://dx.doi.org/10.46827/ejefr.v6i4.1359
Refbacks
- There are currently no refbacks.
Copyright (c) 2022 Adriane John P. Luncido, Agustina Tan-Cruz
This work is licensed under a Creative Commons Attribution 4.0 International License.
The research works published in this journal are free to be accessed. They can be shared (copied and redistributed in any medium or format) and\or adapted (remixed, transformed, and built upon the material for any purpose, commercially and\or not commercially) under the following terms: attribution (appropriate credit must be given indicating original authors, research work name and publication name mentioning if changes were made) and without adding additional restrictions (without restricting others from doing anything the actual license permits). Authors retain the full copyright of their published research works and cannot revoke these freedoms as long as the license terms are followed.
Copyright © 2016 - 2023. European Journal of Economic and Financial Research (ISSN 2501-9430) is a registered trademark of Open Access Publishing Group. All rights reserved.
This journal is a serial publication uniquely identified by an International Standard Serial Number (ISSN) serial number certificate issued by Romanian National Library. All the research works are uniquely identified by a CrossRef DOI digital object identifier supplied by indexing and repository platforms. All the research works published on this journal are meeting the Open Access Publishing requirements and standards formulated by Budapest Open Access Initiative (2002), the Bethesda Statement on Open Access Publishing (2003) and Berlin Declaration on Open Access to Knowledge in the Sciences and Humanities (2003) and can be freely accessed, shared, modified, distributed and used in educational, commercial and non-commercial purposes under a Creative Commons Attribution 4.0 International License. Copyrights of the published research works are retained by authors.
