DETERMINANTS OF SAVING AND INVESTMENT IN DEPRIVED DISTRICT CAPITALS IN GHANA -A CASE STUDY OF NADOWLI IN THE UPPER WEST REGION OF GHANA

Abstract

This study was based on a microeconomic approach of estimating the determinants of financial saving and investment in one of the most deprived district capitals in Ghana, Nadowli in the Nadowli District of the Upper West Region. Two separate multiple linear regression models were fitted for saving and investment. The Paper found that there is the propensity to save and invest in Nadowli in spite of low income. Whereas the levels of income, educational status, occupation, have positive influence on saving, the number of dependents exerts a negative influence on saving. The paper found that age composition and assets do not have a significant effect on saving. The factors that drive household investment are occupation, expenditure, assets and saving. Any decision or policy pertaining to finance and development by government, the private sector or financial institutions geared towards improving saving and investment in Nadowli must incorporate these factors.