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Abstract
This paper provides an analysis of microeconomic factors that explain the
savings behavior of rural households in Kazakhstan based on unique survey
data. Rural household savings are estimated in order to test household
responses to income, monetary or non-monetary wealth, and some socioeconomic
variables. Based on the analysis results, we conclude that although
some rural households save in the form of financial assets, most households
prefer to save in animal stock. It is explainable by the reluctance of
commercial banks – the only source of financial services for the rural
population in Kazakhstan – to deal with low-income rural clientele. The
conclusions suggest that the government should revise its policies regarding
Rural Credit Partnerships (RCPs), making them full-fledged cooperative
institutions for savings and loans.