Determinants of Domestic Savings in Turkey

Domestic savings are the most crucial sources of finance for sustainable economic growth and development. It is critical, especially for developing countries to identify the reasons behind the inefficiency of the domestic economy and the factors that determine the domestic savings. This study aims to determine the factors affecting domestic savings in Turkey over the period 1979-2017. Five independent variables consisting of monetary, financial and demographic aspects are utilized as determinants of domestic savings in Turkey in accordance with the international literature. Obtained results reveal that the GDP per capita and bank deposit interest rate have a positive impact on savings, and inflation and public spending have a negative impact on savings; whereas urbanization rate has no statistically significant effect on savings