Libéralisation financière et épargne des ménages : quel(s) liens(s) ?

Abstract

The effect of financial liberalization on private saving is theoretically  ambiguous, not only because the link between interest rate and saving is it  self ambiguous, but also because financial liberalization is a multi- dimensioned and reversible process. Some dimensions, such as increased  household access to consumer credit or housing finance, can also reduce  private savings rather than increasing them. The goal of this paper is to  provide an empirical examination of the total effect of the financial reform on  aggregate private saving based on Algerian case. Using Principal  Components Analysis, we construct an index of financial liberalization for  Algeria. This is employed for an econometric analysis of private saving in  this country during the period 1970-2006.We find that liberalization appears  to have had a significant negative effect on saving.Furthermore, there is no  evidence of any significant effects of the interest rate