Global Journal of Human Social Science, E: Economics, Volume 21 Issue 4

d) Long–Run Estimates of ARDL Approach Table 3: Result of the Long-Run Estimates Variable Coefficient Std. Error t-Statistic Prob. C -3.935830 2.103135 -1.871411 0.0776 LNGS(-1)* -0.187539 0.147794 -1.268926 0.2206 LNINT(-1) 0.065857 0.080417 0.818947 0.4235 LNINF(-1) 0.047654 0.019725 2.415943 0.0265 LNGDP(-1) 0.527124 0.213428 2.469800 0.0238 LNREM(-1) -0.205587 0.116166 -1.769775 0.0937 D(LNGS(-1)) -0.362844 0.105207 -3.448844 0.0029 D(LNGS(-2)) -0.371500 0.085932 -4.323164 0.0004 D(LNGS(-3)) -0.507882 0.054989 -9.236030 0.0000 D(LNINT) -0.008119 0.082693 -0.098179 0.9229 D(LNINT(-1)) 0.130041 0.084103 1.546216 0.1395 D(LNINF) 0.021211 0.011953 1.774513 0.0929 D(LNINF(-1)) -0.023879 0.014291 -1.670931 0.1120 D(LNINF(-2)) -0.018072 0.011329 -1.595234 0.1281 D(LNGDP) 1.236912 1.101880 1.122547 0.2764 D(LNGDP(-1)) 0.663201 1.003260 0.661046 0.5170 D(LNGDP(-2)) -0.709099 1.048418 -0.676352 0.5074 D(LNGDP(-3)) -1.752997 0.901423 -1.944700 0.0676 D(LNREM) 0.157008 0.088557 1.772964 0.0932 D(LNREM(-1)) 0.409585 0.117412 3.488436 0.0026 D(LNREM(-2)) 0.504683 0.099336 5.080553 0.0001 D(LNREM(-3)) 0.197701 0.066752 2.961736 0.0084 Table 3 shows the long-run coefficient of the ARDL model. The result indicates that the previous year’s deposit interest rate (INT) has a positive impact on current year gross savings (GS) but not significant. This result is similar to Murshed & Robin (2012). Moreover, inflation and gross domestic product (GDP) bear a significant (at 5 percent) positive impact on gross savings. That is, if 1 percent increase in last year’s inflation, gross savings will increase in approximately 5 percent. The result also indicates that the impact of the previous year remittance on gross savings is negative and significant at 10 percent. Volume XXI Issue IV Version I 36 ( E ) Global Journal of Human Social Science - Year 2021 © 2021 Global Journals An Empirical Analysis of Interest Rate and Domestic Savings in Bangladesh