Determinants of household savings and saving motivation: Eskisehir case

Foreign capital flow which is considered as an economic advantage factor in developed countries may signify an important economic problem for countries facing national saving deficit and structural fragilities. Foreign trade -can be named as "foreign saving" as well- have an withdrawal tendency from countries facing structurel problems as chronic current account deficit, budget deficit and foreign trade deficit in crisis periods as a consequence of saving deficit. This situation can cause serious pressure on countries' production and investment pattern, exchange rates and inflation rates. Turkey adopted a foreign resource borne growth model after 2000's, since in this period national savings went under total fixed capital investment level. As a result of this current account deficit had an chronic structure and after 2015 some economic, political and forign policy problems caused deterioration on country's economic parameters. The foundation of this situation which is emerge of national saving deficit is falling tendency of private savings and household savings that are most important components of total savings after 2000. To exhibit basis of problems that our country is facing today we examined determinants of household savings. Analaysis' results that had run with household saving data gathered from Eskisehir shows that traditions, culturel assets, household income, number of children, liquidity constraint, political agenda, taxes and precaution motive are basic determinants of household savings. Furthermore factors that have a positive impact on household saving are covered in "saving motive" term's content.