DETERMINANTS OF SAVING RATE IN SUDAN: An Empirical Investigation (1990-2013)

Mutasim Ahmed Abdelmawla, Omran Abbas Yousif


Saving is considered as an important source of financing investment in any country, and a tool for achieving macroeconomic stabilization. The Sudan economy witnessed a number of difficulties over time such as supply rigidities, internal and external imbalances, higher inflation rates, which all contributed in a way or another to low saving rate in the country. This paper aimed at examining the determinants of saving rate in Sudan during the period (1990-2013) taking into consideration real disposable income, real deposit rate, and age dependency ratio as explanatory variables. The OLS technique is adopted for conducting the regression analysis. The main results obtained signify that age dependency ratio reduces the saving rate, while real deposit rate and real disposable income impact positively. Each of the explanatory variables is statistically significant at 1% level. The saving rate in Sudan during the period under study is found to be more responsive to age dependency ratio followed by real deposit rate, and lastly real disposable income. The study recommends increasing social security networks particularly for children and elderly people, besides encouraging saving awareness in both the private and public sectors, improving resource management, and curbing inflation rate to promote real deposit rates. It is highly recommended to reform the banking system to attract savings. Sudan should also focus more on policies that increase economic activity in the country - particularly in the productive sectors of agriculture and industry, in order to enhance real disposable incomes.


Sudan;saving rate; Deposit rate;Disposable rate; Social security network

Full Text:



- Abdallah, A.A. (2002) : “Causality between Domestic Savings and Economic Growth: An Empirical Analysis for Sudan (1971-1994)”, Unpublished M.Sc. Dissertation, Department of Economics, University of Gezira, Wad Medani, Sudan.

- Adam Mohamed Adam (2004): “Causality between Domestic Savings and Economic Growth: A Case Study of Sudan (19822000)”. Unpublished M.Sc. Dissertation, Department of Economics, Faculty of Economic and Social Studies University of Khartoum, Khartoum, Sudan.

- Adewuyi, Bankole, & Arawomo. (2007): “What Determines Saving in the Economic Community of West African States (ECOWAS)?”. Journal of Monetary and Economic Integration, 71-72.

- Arabi, Khalafalla, A. (2014): “Sustainability and Genuine Saving: Empirical Evidence from Sudan Economy”. Journal of Economics and Development Studies, December 2014, Vol. 2, No. (4), 211-222.

- Arabi, Khalafalla, A. (2002): “The Application of Two Gap Analysis to the Sudan Economy”. Scientific Journal of Sudan Academy for Science, June Volume (2002).

- Ayalew, H. A. (2013): “Determinants of Domestic Saving in Ethiopia: An Autoregressive Distributed Lag (ARDL) Bounds Testing Approach. Journal of Economics and International Finance, 248-257.

- Central Bank of Sudan, Annual Reports (Various Issues).

- Central Bureau of Statistics, Khartoum, Sudan.

- Chowa, G., Masa, R., and Ansong, D. (2012): “Determinants of Saving among Low-Income Individuals in Rural Uganda: Evidence from Assets Africa”. Advances in Applied Sociology, Vol. 2, No. (4), 280-291.

- Emmanuel. A., and Ahmad, Y. (2001): “Causal Relationship between Domestic Savings and Economic Growth: Evidence from

KUJMS Khartoum University Journal of Management Studies School of Management Studies. Vol.10, Issue 1, 2016

Seven African Countries”, African Development review, Vol. (13), 238-275.

- Jongwanich, J. (2010): “The Determinants of Household and Private Savings in Thailand”. Applied Economics, Vol. 42 (8), 965976.

- Kalebe, K. M. (2013): “Determinants of Private Savings in Lesotho”. Unpublished M. A. Dissertation, Department of Economics, University of Nairobi, Kenya.

- Karlan, D., and Morduch, J. (2010): “Access to Finance: The Economics of Saving - Ideas and Evidence”. Journal of Development Economics, 1-25.

- Kibet, L. K., Mutai, B. K., Ouma, D. E., Ouma, S. A., and Owuor, G. (2009): “Determinants of Household Saving: Case Study of Smallholder Farmers, Entrepreneurs and Teachers in Rural Areas of Kenya. Journal of Development and Agricultural Economics, 137140.

- Kiptoo, B. (2011). Impacts of Remittance Inflows on Domestic Savings in Kenya. University of Nairobi Press, 1-50.

- Mbuthia, A. N. (2011): “Households’ Saving Decisions in Kenya”. Unpublished Ph.D. Thesis, School of Economics of Kenyatta University, Kenya.

- Mohamed, Issam, A., Osman, Mohamed, K., and Hamza, Hamza I. (2012): “Impacts of Foreign Exchange Rates on Savings in Sudan”. Social Science Research Network (2012). Accessed on 20/11/ 2014 from the website:

- Mohamed, Sheema, A. (2007): “Saving Function in Sudan”. An Empirical Study (1990-2004)”, (in Arabic), Unpublished M.Sc. Dissertation, Department of Economics, Omdurman Islamic University, Omdurman, Sudan.

- Mualley, Salih, M. (2011): “Determinants of Savings: An Empirical Evidence from African Countries, 1990-1999”. The Researcher Journal, Vol. (9).


  • There are currently no refbacks.