The influences of telecommunication technology and gender differences on private savings in the Asia–Pacific region

Abstract

Purpose

The purpose of this study is to examine empirically the impacts of gender differences, telecommunication technology (ICT) and other determinants on private savings in 28 selected Asia–Pacific countries.

Design/methodology/approach

This study employs the panel data from 2010 to 2017 across 28 selected Asia–Pacific countries. To enhance robustness and address the possibility of endogeneity issue, the present study utilises the fixed effect instrumental variable (IV) estimator to estimate the private savings model for Asia–Pacific region.

Findings

The present study finds that private savings is positively related to disposable income and ICT, but it is negatively associated with the degree of dependency. However, the association between interest rates and private savings are inconclusive as both positive substitution and negative income effects on private savings were observed. Moreover, the results also indicate that working females tend to save less than working males and that of the educated female, despite their impacts are varied across educational attainment levels.

Originality/value

This study provides a novel insight into private savings patterns by focussing upon the gender differences and ICT aspects. In stark contrast to previous literature on the issue, the authors find that working and educated females negatively impact private savings in Asia–Pacific economies due to income inequality and consumption habits. However, the results show that ICT accelerates private savings as it provides easy access to financial services and the requisite frameworks, such as e-business platforms, for generating passive income as well as provide the modalities for more cost-efficient shopping such as price and product comparison frames that yield costs savings which can then be potentially channelled into private savings.

Citation

Tang, C.F. and Abosedra, S. (2022), "The influences of telecommunication technology and gender differences on private savings in the Asia–Pacific region", Asia-Pacific Journal of Business Administration, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJBA-01-2022-0040