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Stephan, Sabine
Schrooten, Mechthild
Year of Publication: 
Series/Report no.: 
DIW Discussion Papers 372
After the collapse in early transition years, saving rates in Eastern European EU-accession countries have recovered strongly. Is private saving in these countries now driven by the same forces as in the EU? A GMM estimator is applied to analyze the determinants of private saving in both country groups. Main results are: saving rates are persistent; income growth increases saving, whereas public saving crowds out private saving. Domestic saving and foreign capital operate as substitutes. Long-run effects of income growth and public saving are larger in the EU than in the candidate countries, indicating that saving behavior in the EU is determined to a larger extent by long-run perspectives than in the candidate countries.
Dynamic panel data model
private savings
Eastern European EU-accession countries
GMM estimator
Document Type: 
Working Paper

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