Changes in farm-level savings and consumption in Taiwan, 1960-1970

Particular attention is given to the determinants of rural savings. Cross sectional as well as time series data collected by a Farm Record-Keeping project were used in the analysis. Overall, a surprisingly high savings capacity was found in the households studied. Households saved an average of roughly one-fifth of their income over the decade. Marginal savings ranged between one-third and two-thirds of marginal incomes. Profitable on-farm investment possibilities, attractive interest rates on savings deposits, secure savings institutions, and substantial growth in household incomes were closely associated with this savings.