Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/146420
Authors: 
Székely Pardo, Miguel
Mendoza, Pamela
Karver, Jonathan
Year of Publication: 
2015
Series/Report no.: 
IDB Working Paper Series IDB-WP-606
Abstract: 
This study addresses why Mexico continues to show below-average economic growth rates in spite of displaying systematically higher domestic savings than other countries in the region. Using the wealth of relevant databases available for the country, the paper finds that a possible explanation is that household savings account for a majority of domestic savings, and that the main instrument used for savings is durable goods, which implies that savings are not directly injected into the financial system for fueling productive investment. The construction of a synthetic panel from household survey data shows that household savings in Mexico have a clear age-increasing trend and have been growing across generations during the past 30 years; it is thus probable that rates will increase in years to come. However, if those savings continue to elude the financial system, their influence on economic growth may remain limited.
Subjects: 
Savings
Household surveys
Growth
JEL: 
D14
E22
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode
Document Type: 
Working Paper

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