SENIOR RESEARCH ON FACTORS AFFECTING THE RURAL HOUSEHOLDS SAVING IN CASE OF CHEHA WOREDA

Abstract

Saving is about income that is not consumed by immediately buying goods and services. Saving constitutes the basis for capital formation, investment and growth of a country. In a country like Ethiopia, the particularly in the study area, income standard is almost uncertain and leads to more consumption rather than saving which has now been a central problem. The study was conducted to assess the determinants of rural household’s saving in Cheha woreda. Both primary and secondary sources were used to gather the data. Simple random sampling technique was used to select the sampled respondents. The data gathered was analyzed using descriptive statistics like percentage and econometric model (multiple linear regression models). The study revealed that the most significant factors that affect rural households saving which income, marital status, family size and total land size. Edir, ekub, mahiber, and saving at home are informal saving practices in the study area. And the most serious problems or constraints of the households saving in the study area: lack of sufficient income, lack of willingness, preferring to save in kind, lack of trust, lack of awareness, cultural background, social affairs and unemployment or lack of non agricultural activities e.t.c are the major once which are surveyed in the study area. From our finding we recommend that provide family planning, increases the productivity of the land, give training about diversify income.