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An analysis of savings among rural poor households in Rwanda
Maniriho, Aristide; Musabanganji, Edouard; Lebailly, Philippe
2020In Das, Gouranga G.; Rukundo, Johnson Bosco (Eds.) Rwandan Economy at the Crossroads of Development - Key Macroeconomic and Microeconomic Perspectives
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Keywords :
Household’s savings; Rural poor households; Rwanda
Abstract :
[en] A household’s savings are considered a primary source of investments which drive economic growth and development. This study identifies the determinants of private savings among poor rural households in Rwanda. It uses data from the 5th round of the Integrated Household Living Conditions surveys conducted in Rwanda every 4 years. It specifies a simultaneous equations model and does the estimations using the 2SLS method to account for missing variables and a possible correlation between some covariates and the error term, which is complemented with a T-test and correlation analysis. The results of the T-test show that savings among poor rural households are significantly positive. The econometric estimates show that in contrast with existing literature, income and all other forms of wealth are factors which do not influence the savings of poor rural households, while consumption is positively correlated with savings. We recommend that socioeconomic development programs, projects, and policies that aim at improving income and consumption levels thus affecting savings among poor rural households should be enhanced.
Disciplines :
Microeconomics
Author, co-author :
Maniriho, Aristide  ;  Université de Liège - ULiège > Doct. sc. agro. & ingé. biol. (Paysage)
Musabanganji, Edouard
Lebailly, Philippe;  Unity of Economics and Rural Development > Gembloux Agro-Bio Tech > University of Liège
Language :
English
Title :
An analysis of savings among rural poor households in Rwanda
Publication date :
01 January 2020
Main work title :
Rwandan Economy at the Crossroads of Development - Key Macroeconomic and Microeconomic Perspectives
Editor :
Das, Gouranga G.
Rukundo, Johnson Bosco
Publisher :
Springer, Singapore
ISBN/EAN :
978-981-15-5046-1
Pages :
21-41
Peer reviewed :
Peer reviewed
Funders :
ARES CCD - Académie de Recherche et d'Enseignement Supérieur. Coopération au Développement [BE]
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since 03 July 2020

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