Abstract:

Savings are of high importance for the countries’ economies as they are fundamental financing sources of investments which are the engine of economic growth and development. However both total savings and household savings have been indicating a constant decrease in Turkey from the beginning of 2000s. It is important to comprehend the reasons lying behind this decrease in the savings as well as factors which determine the savings. This study analyzes factors which determine savings in Turkey in micro and macro level by focusing on determinants of the savings. Study results suggest that factors which determine savings in Turkey in macro level are income, economic growth, inflation, real interest rate, public saving rate, share of credits provided to private sector in GDP in macro level, financial development, dependency rate, current deficit, foreign trade rate, participation of women while factors which determine savings in Turkey in micro level are income, age and education level, household size, registration in social security institution, employment status, living in rural or urban areas, ownership of house-car. Understanding the determinants of savings in Turkey will help the design and implementation of instruments and policies which encourage the savings efficiently. 

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