Sparking and Fueling Consumer Savings in Developing and Developed Nations - Essay Sample

Introduction

A good understanding of public’s savings behavior is a critical tool in the designing and erecting of sound investment and savings policies. The huge economic discrepancies existing between various countries’ economic status results in significant differences in consumer behaviors. These differences are more so apparent between developing and developed nations.

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In this paper, the researcher will discuss the possible ways through which consumer saving can be sparked and fueled. To achieve the desired consumer saving levels, the researcher will delve into the various determinants of savings in the economy. The researcher will also present the format upon which the final research will be built. The research proposal will present the various chapters to be included in the research project.

The project will begin with the introduction as its first chapter. The introduction will harbor the research project’s definition of terms, significance, scope, objectives and limitations of the study, research hypothesis, theoretical framework as well as the statement of research problem (Wong 2020). Dependent and independent variables of interest relative to the proposed study will be explored in the second chapter, the literature review. The third chapter will revolve around the research methods to be deployed in the study. After the required data has been collected and appropriately analyzed, the fourth chapter will delve into the findings drawn from the analyzed research data (Wong 2020). The study will be wrapped up in chapter five where the study’s conclusions and recommendations will be discussed by the researcher.

Background of Study

The required analysis regarding consumer saving trends on a national level demand that sufficient data be collected to constitute a reliable and valid basis upon which policy makers and financial institutions might base their subsequent decisions. The data thus required should be of household saving behavior which includes household savings preferences and saving patterns. The role of savings in a nation’s development scheme can never be underestimated. Economic growth theories have time and again depicted the power that savings hold in influencing a nation’s productivity. Gathering more information regarding saving trends and behaviors will thus enable interested parties to gain a deeper understanding of economic growth. Savings in the most basic sense translates to any income reserved for future use. The various forms of savings determine how quickly or easily such assets can be mobilized for future use. Land, for example, when used as a form of saving, cannot be liquidated as quickly and as easily as bank deposits.

History of Saving in the Nation

The ease with which a nation or an individual can transform some form of saving to erect required capital determines how efficiently development opportunities can be utilized. The effective and efficient transformation of resources into productive activities are great determinants of economic growth. Taking the country of interest into perspective, this section will delve into the various crucial aspects of the country’s saving’s history as exhibited on published historical data and metadata.

Statement of Problem

Over the recent years, demographic changes across the planet have triggered a dire need for acute changes in micro and macro-economic aspects of various nations. Essential services required to cater for the increasing number of the elderly such as housing and health care are some of the issues that are affecting the microeconomic front (International Monetary Fund (IMF) 2004). On the other hand, capital flows, labor productivity and savings-related issues are some of the pressing matters on the macroeconomic front (International Monetary Fund (IMF) 2004).

Bibliography

International Monetary Fund (IMF). 2004. “Chapter III. How Will Demographic Change Affect the Global Economy?” In World Economic Outlook, September 2004: The Global Demographic Transition. Washington, Dc: International Monetary Fund. https://www.elibrary.imf.org/view/IMF081/08008-9781589064065/08008-9781589064065/ch03.xml?language=en&redirect=true.

Wong, Paul T. P. 2020. “How to Write a Research Proposal.” International Network of Personal Meaning (INPM). INPM. 2020. https://www.meaning.ca/archives/archive/art_how_to_write_P_Wong.htm#:~:text=It%20is%20a%20brief%20summary,instruments%20that%20will%20be%20used.