Title: Economic growth strategy: an empirical analysis of the determinants of the private saving rate in Lebanon

Authors: Roy Joseph Khoueiri; Elie Menassa; Joe Tanos Chahine; Elie Shahda Shahda

Addresses: Faculty of Business Administration and Economics, Notre Dame University, Louaize, 72 Zouk Mikael, Kesrouan, Lebanon ' Faculty of Business and Management, University of Balamand, P.O. Box 100 Tripoli, Kelhat, El Koura, Lebanon ' Faculty of Business Administration and Economics, Notre Dame University, Louaize, 72 Zouk Mikael, Kesrouan, Lebanon ' Faculty of Business Administration and Economics, Notre Dame University, Louaize, 72 Zouk Mikael, Kesrouan, Lebanon

Abstract: Stemming from the factuality that a nation's saving rate is a key indicator of the investment rate, a decisive influencer on economic growth, this empirical study aims at analysing the determinants of the Lebanese private saving rate. Private saving is a vital element to the Lebanese national saving rate, as the other constituent, the public saving rate, has remained persistently negative throughout the post-war period, hence accentuating the importance of researching its determinants. Secondary data covering the period from 1980 to 2014 is employed in the aim of testing seven hypotheses linking private saving to both demographic and macroeconomic variables. The findings provide evidence of significant negative causality between the dollarisation rate and growth in urbanisation rate with private saving as expected, while the income variable unpredictably showed a negative causal relationship. These implications help determine the proper strategy to follow for more effective planning and policy making.

Keywords: private saving rate; dollarisation rate; urbanisation rate; income; interest rate; inflation; age dependency; Lebanese; economic growth; growth strategy; saving determinants; saving; Lebanon.

DOI: 10.1504/IJSSM.2021.117856

International Journal of Sustainable Strategic Management, 2021 Vol.9 No.1, pp.17 - 33

Received: 23 Jul 2019
Accepted: 12 Jun 2020
Published online: 04 Oct 2021 *