Factors Affect the Domestic Savings Rate in Malaysia

Lim, Kah Hao (2021) Factors Affect the Domestic Savings Rate in Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

Text Lim Kah Hao 18WBR11585 FYP Full.pdf Restricted to Registered users only Download (1MB)

Abstract

In the last ten years, the factors affect the domestic savings rate in Malaysia have been discussed by many researcher. Among those researches, there are few important factors is most pay close attention which is the interest rate and the inflation. Those research result had shown that there is include the positive and negative relationship between the variables. This paper purpose is to tested the factors affect the domestic savings rate in Malaysia during the year 2007 quarter 1 to 2021 quarter 3. The independent variables in this study is savings rate while the independent variable is interest rate, gross domestic product per capita and consumer price index. There is unit root test, Johansen-Juselius co-integration test and Granger Causality test will be applied to test the relationship between the variables. Result in the study shows that interest rate, gross domestic product per capita is positive impact to the savings rate and the consumer price index in negative impact to the savings rate.