Open AccessAn Analysis of Age Dependency Burden and Saving Rates in Pakistan
Author(s) -
M. Saqib Nawaz,
Imran Sharif Chaudhry,
Muhammad Ahmed Shehzad,
Muhammad Ramzan Sheikh
Publication year - 2021
Publication title -
review of applied management and social sciences
Language(s) - English
Resource type - Journals
eISSN - 2708-3640
pISSN - 2708-2024
DOI - 10.47067/ramss.v4i2.154
Subject(s) - granger causality , dependency (uml) , causality (physics) , dependency ratio , economics , econometrics , demography , computer science , population , physics , software engineering , quantum mechanics , sociology
This study analyzes the impact of age dependency on gross savings for the period of 1975 to 2018 by applying ARDL and Granger causality techniques. The findings of the study suggest that young-age dependency and old-age dependency have a negative impact on gross savings in the long run. Granger causality test reveals that the causality between age-dependency of young and gross savings is bidirectional while the causality between age-dependency of old and gross savings is unidirectional. The study is also equipped with policy implications.