Examining the determinants of rural households saving in case of Shebel Berenta district, East Gojjam Zone, Amhara rgional state
| Main Author: | ashebir tsegaye |
|---|---|
| Format: | Article |
| Terbitan: |
, 2019
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| Subjects: | |
| Online Access: |
https://zenodo.org/record/3565593 |
Daftar Isi:
- This study was conducted in order to assess factors affecting rural households saving in Shebel Berenta District. In this study survey cross sectional data were used that were collected from 100 sample households from four rural kebeles. Both primary and secondary source of data were used and interview schedule and focus group discussion were used as data collection tools. Moreover, both descriptive and inferential statistics were used to analysis the data. The descriptive analysis showed that some rural households practiced saving in financial institutions and the common reasons for rural households no saving in financial institutions in the study area were; they had no surplus cash to save, low income, they were not aware about saving culture and saving institutions are far. Besides, the Binary logit analysis showed that household heads’ attitude toward saving enhances households’ awareness to decide to save money in financial institutions. Moreover, household head with positive personal saving habits has more probability to save than household head with negative personal saving habits. Households with high monthly income would like to save in financial institutions. Distance from financial institutions and dependency ratio significantly affects rural households’ savings in the study area. Developing strategies that promote rural households savings in rural areas is an integral part to achieve economic growth in the study area. On this finding, due attention should be given to increase income of rural households by implementing different policies. Government should subsidize the household through diversifying their agricultural activities and income source by engaging in nonfarm/off farm activities.