Dependency Rate and Savings: The African Evidence with Panel Data

Nicholas Apergis, Christina Christou


This study examines the impact of the age dependency ratio on domestic savings rates. We test this issue for 16
African countries using annual panel data. The empirical analysis was conducted using the panel unit roots, panel
cointegration and panel causality tests. The empirical findings indicate evidence of panel cointegration.
Furthermore, results from panel causality analysis reveal that dependency ratio causes savings rate negatively.
Overall, our findings support the view that changes in non-working population size are important in explaining
the future path of domestic savings rates in Africa.

Full Text:



Copyright (c) 2012 International Journal of Business and Management

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online) Email:

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.