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Original Research

THE DETERMINANTS AND POLICY IMPLICATIONS FOR HOUSEHOLD SAVING BEHAVIOUR: EVIDENCE FROM SOUTH SULAWESI, INDONESIA

IRDAWATI 1, ABDUL RAKHMAN LABA 2, MUHAMMAD YUNUS AMAR 3, FAUZI R RAHIM 4, and LENI SALEH 5.

Vol 18, No 09 ( 2023 )   |  DOI: 10.5281/zenodo.8394205   |   Author Affiliation: Lakidende University, Sultan Hasanuddin, No. 234, Konawe, Indonesia 1,5; Hasanuddin University, Perintis Kemerdekaan KM 10, Makassar, Indonesia 2,3,4.   |   Licensing: CC 4.0   |   Pg no: 993-1006   |   Published on: 25-09-2023

Abstract

This research intends to examine the possibilities for increased savings in household food consumption through a study of the Household willingness and behavioural aspects in food consumption and saving behaviour, as applied within an Indonesian environment. Based on a thorough review of the literature, the authors contend that household food consumption and saving behavior may be positively correlated with financial literacy, product knowledge, and prior experience, whereas the discomfort associated with food consumption-saving activities may have the opposite effect. The hypotheses are tested using logit regression analysis on a sample of 816 randomly chosen South Sulawesi inhabitants. The conclusions provide credence to the theories on the opposing effects of the discomfort brought on by food consumption-saving activities and the favorable impact of economic incentives, social norms, policy, and past experience as they relate to broader food consumption-saving behavior. Finally, some conclusions are drawn, and recommendations for more research and policymakers are made.


Keywords

Saving Behaviour, Financial Literacy, Product Knowledge, Consumption Behaviour.