Determinants of Rural Household Saving in Tanzania

Mchumi, Isaack Michael (2017) Determinants of Rural Household Saving in Tanzania. ["eprint_fieldopt_thesis_type_phd" not defined] thesis, The Open University of Tanzania.

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Abstract

This study examines determinants of rural household saving in Tanzania with specific objectives to: (i) Identify saving motives of rural households; (ii) Assess switching of saving motives; (iii) Determine association between saving motives and demographic characteristics; and (iv) Ascertain temporal dimension of bequest distribution between in-vivos transfers and intergenerational transfers. Hypotheses of the study are: (i) saving motives of rural households is rational, and (ii) rural households are rigid in switching off saving motives. This is a cross-sectional study involving triangulation of data using structured interview of 810 respondents and 11 focus groups discussion. Descriptive analysis, econometric analysis (Logistic Regression) and inferential analysis (Chi-Square Test) were used in data analysis of descriptive statistics, correlation and testing of the study hypotheses respectively. The study reveals that majority (85.4 percent) in rural follow Life-Cycle Model; education (with 66.7 percent) is top priority saving motive; rural households do not easily switch off saving motives; education level with Wald statistic (2.066) (p=0.151) is the only independent variable that increases the logit of the dependent variable that means it increases the likelihood of a household to choose livelihood saving motives. Also, study results show that bequests are distributed to all children regardless of gender but depending on type of bequests both in-vivos transfers and intergenerational transfers exist. The study hypothesis that rural households chose rational saving motives is valid. Conclusion drawn from this study is that rural households save for rational course. The study offers some policy recommendations including saving incentives; provision for financial literacy to enhance saving knowledge; and increase rural outreach of inclusive financial services. Enhancing financial and insurance markets is imperative for rural households to save for ventures capable of accelerating poverty reduction.

Item Type: Thesis (["eprint_fieldopt_thesis_type_phd" not defined])
Subjects: 300 Social Sciences > 360 Social services; association
Divisions: Faculty of Arts and Social Sciences
Depositing User: Mr Habibu V. Kazimzuri
Date Deposited: 05 Oct 2018 17:43
Last Modified: 05 Oct 2018 17:43
URI: http://repository.out.ac.tz/id/eprint/2129

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