THE DETERMINATION OF THE VARIABLES INFLUENCING THE SAVING CHOICES IN TURKEY BY USING CANONICAL CORRELATION ANALYSIS

Abstract

In this study, saving choices and the relationships between factors affecting these choices were investigated. In order to reveal these relationships, data matrixes relating 25 variables on Turkish provinces were considered. In analysing the data, Canonical Correlation Analysis as a multi-variate statistical method was conducted. The results of the analysis showed variables such as the population density, income, banks number and business number firms which are the indicators of a vigorous economy have important effects on saving choices. Besides; the amount of stock investment per person, the amount of deposit investment in Turkish Lira per person and the amount of deposit investment in Turkish Lira per account are highly influential on savings choices. According to canonical correlation coefficients, it was found the foreing exchange choices and gold choices were leastly affected as compared to other choices. This finding shows Turkish people consider the foreign exchange and gold investments as the traditional investment tools, wheras stock investment and Turkish Lira deposit investments are speculative investments.