Given that there is a recent growing interest in mobilizing savings of poor households, this study investigates the factors that affect household saving in Egypt using a probit model. It uses data of the Egypt Labor Market Panel Survey (ELMPS) carried out in 2012. Also, it tests the impact of accessing credit on informal and formal saving. The results of the study show that the determinants of informal saving are quite different from formal saving. For example, access to credit significantly increases the probability of saving among the poor. However, credit increases informal saving while it has an insignificant effect on formal saving. This suggests that there is little evidence on the mutually reinforcing relationship between formal borrowing and formal saving since there is a weak incentive to convert informal savings of the poor into formal deposits. Females have higher tendency to save, yet they save informally which highlights the need for gender-sensitive saving products. Also, health emergencies have a significant negative effect on informal saving of poor households while insurance reduces the use of savings as Out Of Pocket (OOP) expenditures on health. Therefore, policies in Egypt should develop an inclusive financial system that increases awareness and confidence in the financial market and improves access to financial services.


Economics Department

Degree Name

MA in Economics

Graduation Date


Submission Date

December 2015

First Advisor

Atallah, Samer

Committee Member 1

Bouaddi, Mohammed

Committee Member 2

El-Komi, Mohamed


74 p.

Document Type

Master's Thesis


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Institutional Review Board (IRB) Approval

Not necessary for this item


First and foremost, thanks Allah for granting me the strength, patience and persistence throughout my master’s journey. I am deeply grateful to my supervisor Dr. Samer Atallah, Assistant Professor of Economics, American University in Cairo, for his valuable guidance, encouragement and support throughout this research. It honors me to work under his supervision. I would like to thank my readers, Dr. Mohammed Bouaddi and Dr. Mohamed El-Komi, Assistant Professors of Economics, American University in Cairo, for the time they dedicated to read my research and give me valuable comments. I owe my sincere gratitude to Dr. Adel Beshai, Professor of Economics and Director of Graduate Studies, American University in Cairo, for supporting me during my study period and for being such a great professor and adviser. Last but not least, I am grateful to my family and friends who continuously supported me. This study would not have been possible without their support, love and care.