The determinants and long-term projections of saving rates in Southeast Asia

Southeast Asia has, in general, been characterized by high domestic and national savings rates almost across the board in recent years, and these high saving rates havemade possible high levels of domestic investment but have also led to large capital outflows (current account surpluses) (see, for example, the data presented in Park and Shin 2009). To put it another way, Southeast Asia has oversaved and underinvested, leading to large current account imbalances (surpluses), as asserted by Bernanke (2005) and others.