The goal of the study is to find out how the growth of pension funds and their accumulation factors are related. Step-wise regression approach was utilized on a dynamic panel data model to verify the individual significance of included variables in the model systematically in order to bring out the core accumulation elements which are driving the pension fund's development, and R2-change was observed for this purpose. The study explores that OECD economies behave differently on the bases of their growth perspective i.e., Defined Benefits, and Employers' Contributions are positively contributing to pension funds in HGO economies and negative in LGO ones, showing that DB is hardly practised in the latter ones and is replaced by DC plan. The approach utilized in this article could be of practical value to policymakers and data analysts in OECD pension funds departments when making decisions on pension fund governance and the underlying fundamental drivers.

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SHIFTING PATTERNS FROM DEFINED BENEFIT TO DEFINED CONTRIBUTIONS AN EMPIRICAL ANALYSIS OF SELECTED OECD COUNTRIES

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15 Pages : 177-193

http://dx.doi.org/10.31703/ger.2022(VII-I).15      10.31703/ger.2022(VII-I).15      Published : Mar 2022

Shifting Patterns from Defined Benefit to Defined Contributions: An Empirical Analysis of Selected OECD Countries

Abstract

    The goal of the study is to find out how the growth of pension funds and their accumulation factors are related. Step-wise regression approach was utilized on a dynamic panel data model to verify the individual significance of included variables in the model systematically in order to bring out the core accumulation elements which are driving the pension fund's development, and R2-change was observed for this purpose. The study explores that OECD economies behave differently on the bases of their growth perspective i.e., Defined Benefits, and Employers' Contributions are positively contributing to pension funds in HGO economies and negative in LGO ones, showing that DB is hardly practised in the latter ones and is replaced by DC plan. The approach utilized in this article could be of practical value to policymakers and data analysts in OECD pension funds departments when making decisions on pension fund governance and the underlying fundamental drivers.

    Pension Funds' Growth, Defined Contribution, Defined Benefit, Occupation Pension Funds, Employee Contribution, Employer Contribution

    (1) Arslan Qayyum
    Assistant Professor, Institute of Business Management, Karachi, Sindh, Pakistan.
    (2) Aniqa Arslan
    Assistant Professor, Shaheed Benazir Bhutto University, Shaheed Benazirabad, Nawabshah, Sindh, Pakistan.
    (3) Shariq Ayyubi
    Associate Professor, Institute of Business Management, Karachi, Sindh, Pakistan.
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Cite this article

APA

    APA : Qayyum, A., Arslan, A., & Ayyubi, S. (2022). Shifting Patterns from Defined Benefit to Defined Contributions: An Empirical Analysis of Selected OECD Countries. Global Economics Review, VII(I), 177-193 . https://doi.org/10.31703/ger.2022(VII-I).15

CHICAGO

    CHICAGO : Qayyum, Arslan, Aniqa Arslan, and Shariq Ayyubi. 2022. "Shifting Patterns from Defined Benefit to Defined Contributions: An Empirical Analysis of Selected OECD Countries." Global Economics Review, VII (I): 177-193 doi: 10.31703/ger.2022(VII-I).15

HARVARD

    HARVARD : QAYYUM, A., ARSLAN, A. & AYYUBI, S. 2022. Shifting Patterns from Defined Benefit to Defined Contributions: An Empirical Analysis of Selected OECD Countries. Global Economics Review, VII, 177-193 .

MHRA

    MHRA : Qayyum, Arslan, Aniqa Arslan, and Shariq Ayyubi. 2022. "Shifting Patterns from Defined Benefit to Defined Contributions: An Empirical Analysis of Selected OECD Countries." Global Economics Review, VII: 177-193

MLA

    MLA : Qayyum, Arslan, Aniqa Arslan, and Shariq Ayyubi. "Shifting Patterns from Defined Benefit to Defined Contributions: An Empirical Analysis of Selected OECD Countries." Global Economics Review, VII.I (2022): 177-193 Print.

OXFORD

    OXFORD : Qayyum, Arslan, Arslan, Aniqa, and Ayyubi, Shariq (2022), "Shifting Patterns from Defined Benefit to Defined Contributions: An Empirical Analysis of Selected OECD Countries", Global Economics Review, VII (I), 177-193

TURABIAN

    TURABIAN : Qayyum, Arslan, Aniqa Arslan, and Shariq Ayyubi. "Shifting Patterns from Defined Benefit to Defined Contributions: An Empirical Analysis of Selected OECD Countries." Global Economics Review VII, no. I (2022): 177-193 . https://doi.org/10.31703/ger.2022(VII-I).15