Mykola Zhuk

Department of Economic Cybernetics,

Faculty of Economics,

Ivan Franko National University of Lviv,

Lviv, Ukraine,

nickzhuk@bigmir.net

MACROECONOMIC DETERMINANTS OF HOUSEHOLD SAVINGS

IN UKRAINE

Abstract. The article elaborates on the issue of household savings in Ukraine and investigates the most significant macroeconomic indicators that influence their formation. The research also focuses on testing the hypothesis of structural breaks in formation of household savings in Ukraine after the World financial  crisis. Formation process of household savings was studied with using the econometric modeling, particularly a multiple linear regression model with an error correction term. Estimated model demonstrated adequacy, stability as well as good performance and could be used for forecasting. Our results showed that household  consumption expenditures and gross national income were the most significant macroeconomic determinants of household savings in Ukraine. In contrast to expectations, hypothesis testing indicated structural break in formation of household savings in Ukraine only in 2010.

Received: May, 2015

1st Revision: July, 2015

Accepted: September, 2015

DOI: 10.14254/2071- 789X.2015/8-3/3

JEL Classification: C22, E21

Keywords: household savings, gross domestic savings, Ukraine, error correction model, unit root.