The impacts and determinants of savings risk-sharing channels on international consumption smoothing : a thesis presented in partial fulfilment of the requirements for the degree of Master of Business Studies in Economics at Massey University, Albany, New Zealand

Abstract

In this study, we found that both institutional quality and average exposure to higher education are determinants in OECD savings channel risk-sharing in 1996-2018. However, when assessing their relationships with the emerging economies, the results are either insignificant or in the wrong direction. Institutional quality only gains statistical significance following the Global Financial Crisis for both country groups, indicating that they are potentially only determinant factors in times of financial turbulence. Greater years in secondary and tertiary education enhances the OECD government savings subchannel’s risk-sharing capacity in the 1990-2010 timeframe but is once again statistically insignificant for their emerging country counterparts.