Abstract:

That country economies provides the equation of investment-saving is highly important in terms of internal balance  of  country.  However, in many developing countries  like Turkey, it  is  seen that the amount of  saving remains under investments and that the problems with saving deficit becomes chronic.  That  saving  deficit  is experienced leads country to go toward  international financial resource to be  able  to  invest.  Besides that this case increases foreign-dependency of  a country,  due  to the currency inflowing  from   foreign financial resources, it is seen that  country currency revalues,  increases current deficit  rate, and causes country to lose power  in international arena.  The increase of foreign dependency also increases  the sensitivity  of  country to exogenous crises and makes it  open to economic risks.  In this context, dealing  with the determinants of  the phenomenon saving has a great  importance for the countries  like  Turkey.  In this  study, it is  aimed  to test the relationship between private  savings  and socioeconomic  determinants by means of  co-integration  test, developed  by   Pesaran et al. (2001),  in the range  of  the period 1985-2014. The results obtained  are in the direction of  that  the decrease in the inflation and  increase  in public  saving  rate  and elderly dependent population  rate reduce private savings.  

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