(university of Lesotho, 2015-03-22) KALEBE, KALEBE M.
Savings are necessary if investment, and hence economic growth and development are to be stimulated.
The paper looks at the broad set of possible determinants of private savings in Lesotho using annual time series
data for the period 1980-2010. The paper estimates the saving rate function and Error-Correction modelling is
used to avoid spurious results. The results indicate that public savings are important in explaining changes in
private savings, both in the short-run and long-run and that the terms of trade negatively influence private savings
in Lesotho in the long-run.