Saving Transition and its decisive role in the economy of Iran

Different behavior of saving around the world, in the past decade and especially its reduction in recent years has attracted the view of many economists and policy makers to. Hence this paper, with the use of specific criteria for transition savings and growth, as their most important result shows that in Iran's economy, the transition of economic growth is at risk and private sector savings also unable to enter the transition stage. However, gross national savings in 1369 (1989) entered a transition phase, but after that period, significant changes is unseen and even it has come to the previous transition values. In this study, this lack of similarity in the behavior of these two rates (national and private) has led the effect of variables such as macroeconomic instability and development of financial markets along with other variables on the savings to be investigated. The most important findings of the paper are that: Firstly, the impact on economic growth although is positive but are very low, so that this effect could not make the transition to savings. Secondly, public sector savings, as a key variable, caused significant decrease in private sector savings and has increased the national savings. Third, one of the serious obstacles of savings in transition economies in Iran is macroeconomic instability.