Publication:
Turkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Report

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dc.contributor.authorWorld Bank
dc.date.accessioned2013-02-06T22:45:47Z
dc.date.available2013-02-06T22:45:47Z
dc.date.issued2011-12
dc.description.abstractDomestic savings in Turkey declined significantly in the 2000s. The domestic savings rate declined from an average of 23.5 percent of gross national income in the 1990s to an average of 17 percent over the 2000-2008 period, and further to 12.7 percent in 2010. This decline was driven by the sharp fall in private saving, while public saving increased through most of the period. A strong fiscal adjustment underpinned the improvement in public savings in the post-2001 period. The adjustment was pursued to correct the fiscal expansion of the previous decade, and it led to a sharp reduction in the public debt to gross domestic product (GDP) ratio. This improved the public saving-investment balance and helped reduce the vulnerability of the economy to external shocks. With an expected increase in future investment needs, continued fiscal discipline will be vital for sustainable growth. The fall in private savings after 2001 was mostly a result of the decline in macroeconomic vulnerabilities. While the economy was growing fast, the positive impact of income growth on savings was overridden by an acceleration of private consumption stimulated by the increased availability of credit, fall in interest rates and previously postponed consumption. As the economy normalized and interest rates and inflation declined, so did household precautionary motives for saving. Eventually, however, continued economic stability and implementation of reforms discussed below should encourage saving by raising incomes. Structurally, Turkish households have a strong precautionary motive for savings. Macroeconomic vulnerabilities and the resulting unstable income streams, the risk of unemployment, and health risks are obvious reasons for household decisions to save. Declining interest rates (as in the 2000s) that reflected reduced risk premium and hence vulnerability reduced precautionary savings motives. Households where the head is an employer or self-employed rather than a wage earner tend to save more, while households where there is a green card holder (a non-contributory health program) save less, controlling for the income effect.en
dc.identifierhttp://documents.worldbank.org/curated/en/2011/12/17011874/turkey-country-economic-memorandum-cem-sustaining-high-growth-role-domestic-savings-synthesis-report
dc.identifier.doi10.1596/12264
dc.identifier.urihttps://hdl.handle.net/10986/12264
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCESS TO FINANCE
dc.subjectACCOUNTING
dc.subjectADDITIONAL INCOME
dc.subjectADDITIONAL SAVINGS
dc.subjectAMOUNT OF SAVING
dc.subjectAMOUNT OF SAVINGS
dc.subjectAVAILABILITY OF CREDIT
dc.subjectAVERAGE GROWTH
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK DEPOSIT
dc.subjectBANK DEPOSITS
dc.subjectBANK LOANS
dc.subjectBANKING SYSTEM
dc.subjectBANKS
dc.subjectBENEFICIARIES
dc.subjectBEQUEST
dc.subjectBOND
dc.subjectBOND MARKET
dc.subjectBOND MARKETS
dc.subjectBONDS
dc.subjectBORROWING
dc.subjectBUSINESS CLIMATE
dc.subjectCALCULATIONS
dc.subjectCAPITAL ACCUMULATION
dc.subjectCAPITAL EXPENDITURE
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL GROWTH
dc.subjectCAPITAL MARKET
dc.subjectCAPITAL MARKETS
dc.subjectCASH FLOWS
dc.subjectCONSUMER LOANS
dc.subjectCONTINGENCIES
dc.subjectCONTRIBUTION
dc.subjectCONTRIBUTIONS
dc.subjectCORPORATE BOND
dc.subjectCORPORATE BONDS
dc.subjectCORPORATE FINANCE
dc.subjectCREDIT CARD
dc.subjectCREDIT CARDS
dc.subjectCREDIT CONSTRAINED FIRMS
dc.subjectCREDIT FLOWS
dc.subjectCREDIT LIMIT
dc.subjectCURRENCY
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT EXPENDITURES
dc.subjectCURRENT RATE
dc.subjectDEPOSIT
dc.subjectDEPOSITS
dc.subjectDEPRECIATION
dc.subjectDEPRECIATIONS
dc.subjectDEVELOPING FINANCIAL MARKETS
dc.subjectDISPOSABLE INCOME
dc.subjectDISPOSABLE INCOMES
dc.subjectDIVERSIFICATION
dc.subjectDOMESTIC CURRENCY
dc.subjectDURABLE GOODS
dc.subjectEARNINGS
dc.subjectECONOMIC COOPERATION
dc.subjectECONOMIC DECISIONS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC MANAGEMENT
dc.subjectECONOMIC POLICIES
dc.subjectEDUCATION LEVEL
dc.subjectEDUCATION LEVELS
dc.subjectEDUCATIONAL ATTAINMENT
dc.subjectEMPLOYEE
dc.subjectEMPLOYEE SAVINGS
dc.subjectEMPLOYER
dc.subjectEMPLOYERS
dc.subjectENTREPRENEURS
dc.subjectEXCHANGE RATE
dc.subjectEXTERNAL FINANCE
dc.subjectEXTERNAL FINANCING
dc.subjectEXTERNAL SHOCKS
dc.subjectFAMILIES
dc.subjectFAVORABLE TERMS
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL EDUCATION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL LITERACY
dc.subjectFINANCIAL LITERACY STRATEGY
dc.subjectFINANCIAL LITERACY SURVEY
dc.subjectFINANCIAL MANAGEMENT
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKET DEVELOPMENT
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SYSTEM
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL PERFORMANCE
dc.subjectFISCAL POLICY
dc.subjectFIXED CAPITAL
dc.subjectFOREIGN CURRENCY
dc.subjectFORM OF SAVING
dc.subjectGENERAL PUBLIC
dc.subjectGOVERNMENT SECURITIES
dc.subjectHOUSEHOLD INCOME
dc.subjectHOUSEHOLD SAVING
dc.subjectHOUSEHOLD SAVINGS
dc.subjectHUMAN CAPITAL
dc.subjectINCOME
dc.subjectINCOME GROUP
dc.subjectINCOME GROUPS
dc.subjectINCOME LEVEL
dc.subjectINCOME LEVELS
dc.subjectINCOME TAXES
dc.subjectINCOMES
dc.subjectINCREASE IN INCOME
dc.subjectINDIVIDUAL RETIREMENT
dc.subjectINDIVIDUAL RETIREMENT ACCOUNT
dc.subjectINFLATION
dc.subjectINFORMAL ECONOMY
dc.subjectINFORMED FINANCIAL DECISIONS
dc.subjectINITIAL PUBLIC OFFERING
dc.subjectINSTALLMENT
dc.subjectINSURANCE
dc.subjectINTEREST COSTS
dc.subjectINTEREST PAYMENTS
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERNAL FINANCE
dc.subjectINVESTING
dc.subjectINVESTMENT CLIMATE
dc.subjectINVESTMENT CORPORATION
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectIRA
dc.subjectLABOR FORCE
dc.subjectLABOR FORCE PARTICIPATION
dc.subjectLABOR MARKET
dc.subjectLARGE FIRMS
dc.subjectLEVEL OF EDUCATION
dc.subjectLIFETIME
dc.subjectLIVING STANDARDS
dc.subjectLOCAL CURRENCY
dc.subjectLONG-TERM SAVING
dc.subjectLONG-TERM SAVINGS
dc.subjectLOW INCOME
dc.subjectLOW-INCOME
dc.subjectLOW-INCOME GROUP
dc.subjectLOWER INTEREST RATES
dc.subjectLUMP SUM
dc.subjectMACROECONOMIC STABILITY
dc.subjectMARKET ECONOMY
dc.subjectMEDIUM ENTERPRISES
dc.subjectMINIMUM PAYMENT
dc.subjectMINIMUM WAGE
dc.subjectMODERATE INCOME
dc.subjectMODERATE-INCOME
dc.subjectMODERATE-INCOME HOUSEHOLDS
dc.subjectMODERATE-INCOME INDIVIDUALS
dc.subjectMONETARY POLICY
dc.subjectMORTGAGE
dc.subjectMORTGAGE LOANS
dc.subjectMUTUAL FUND
dc.subjectMUTUAL FUNDS
dc.subjectNET WORTH
dc.subjectOPERATING COSTS
dc.subjectPENSION
dc.subjectPENSION FUNDS
dc.subjectPENSION MEMBERS
dc.subjectPENSION SCHEME
dc.subjectPENSION SCHEMES
dc.subjectPENSION SYSTEM
dc.subjectPERSONAL FINANCE
dc.subjectPHYSICAL ASSETS
dc.subjectPHYSICAL CAPITAL
dc.subjectPRECAUTIONARY SAVING
dc.subjectPRECAUTIONARY SAVINGS
dc.subjectPRIMARY EDUCATION
dc.subjectPRIVATE PENSION
dc.subjectPRIVATE PENSIONS
dc.subjectPRIVATE SAVING
dc.subjectPRIVATE SAVINGS
dc.subjectPRIVATIZATION
dc.subjectPRODUCTIVITY
dc.subjectPROFIT MARGIN
dc.subjectPROFIT MARGINS
dc.subjectPROFITABILITY
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC EXPENDITURES
dc.subjectPUBLIC FINANCES
dc.subjectPUBLIC INVESTMENT
dc.subjectPURCHASES
dc.subjectRAPID DEVELOPMENTS
dc.subjectREGRESSION ANALYSIS
dc.subjectRETIREMENT BENEFITS
dc.subjectREVOLVING FUNDS
dc.subjectRISK PERCEPTIONS
dc.subjectRISK PREMIUM
dc.subjectSALARY
dc.subjectSALES
dc.subjectSAVERS
dc.subjectSAVING BEHAVIOR
dc.subjectSAVINGS
dc.subjectSAVINGS ACCOUNTS
dc.subjectSAVINGS RATE
dc.subjectSAVINGS RATES
dc.subjectSECONDARY EDUCATION
dc.subjectSECURITIES
dc.subjectSEVERANCE PAY
dc.subjectSOCIAL SECURITY
dc.subjectSPECIAL SAVING
dc.subjectSTAKEHOLDERS
dc.subjectSTOCK EXCHANGE
dc.subjectSTOCKS
dc.subjectSURVEY OF CONSUMER
dc.subjectSURVEY OF CONSUMER FINANCES
dc.subjectTAX BURDEN
dc.subjectTAX EXEMPTION
dc.subjectTAX INCENTIVES
dc.subjectTAX RATE
dc.subjectTAX RATES
dc.subjectTAX-EXEMPT
dc.subjectTERMINATION
dc.subjectTOTAL SAVING
dc.subjectUNEMPLOYMENT
dc.subjectUNEMPLOYMENT INSURANCE
dc.subjectUNION
dc.subjectUNSTABLE INCOME
dc.subjectVALUABLE
dc.subjectVOLATILE INCOME
dc.subjectWAGE
dc.subjectWITHDRAWAL
dc.subjectWORK FORCE
dc.subjectWORKING AGE
dc.subjectWORKING AGE POPULATION
dc.titleTurkey - Country Economic Memorandum (CEM) : Sustaining High Growth - The Role of Domestic savings : Synthesis Reporten
dspace.entity.typePublication
okr.date.disclosure2012-11-27
okr.date.doiregistration2025-05-07T09:55:19.628179Z
okr.doctypeEconomic & Sector Work::Country Economic Memorandum
okr.doctypeEconomic & Sector Work
okr.docurlhttp://documents.worldbank.org/curated/en/2011/12/17011874/turkey-country-economic-memorandum-cem-sustaining-high-growth-role-domestic-savings-synthesis-report
okr.globalpracticeFinance and Markets
okr.globalpracticeTrade and Competitiveness
okr.guid903351468172771136
okr.guid367591468172772598
okr.identifier.externaldocumentum000333037_20121128233319
okr.identifier.internaldocumentum17011874
okr.identifier.report66301
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2012/11/28/000333037_20121128233319/Rendered/PDF/NonAsciiFileName0.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.countryTurkiye
okr.sectorPublic Administration, Law, and Justice :: General public administration sector
okr.themeEconomic management :: Other economic management
okr.themeEconomic management :: Macroeconomic management
okr.themeEconomic management :: Analysis of economic growth
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicBanks and Banking Reform
okr.topicPrivate Sector Development::Emerging Markets
okr.topicFinance and Financial Sector Development::Financial Literacy
okr.topicFinance and Financial Sector Development::Access to Finance
okr.unitPoverty Reduction/Econ Mngmt (ECSPE)
okr.volume1 of 1
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