Why are Saving Rates so High in China?
By D. Yang, Junsen Zhang, Shaojie Zhou. Social Science Research Network, 2011
143 citations recorded by the source corpus.
In this paper, we define "The Chinese Saving Puzzle" as the persistently high national saving rate at 34-53 percent of gross domestic product (GDP) in the past three decades and a surge in the saving rate by 11 percentage points from 2000-2008. Using data from the Flow of Funds Accounts (FFA) and Urban Household Surveys (UHS) supplemented by the findings from existing studies, we analyze the sources and causes of China's high and rising saving rates in the government, corporate, and household sectors. Although the causes of China's high saving are complex, we suggest that the evolving economic, demographic, and policy trends in the internal and external environments of the Chinese economy will likely lead to a decline in national saving in the foreseeable future.
Subfields: Accounting, Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/1efbdc411f9c91f446685968b59a6b75301695f8
How researchers see this paper
The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.
In Accounting
In Economics and Econometrics
- Simon Sturn
- Till van Treeck
- Chen Bai
- Xiaoyan Lei
- Eckhard Hein
- Thomas Dallery
- Özlem Onaran
- Engelbert Stockhammer
Citations in the corpus
- New trends in population aging and challenges for China’s sustainable development (2020, background): “In addition, the average gross domestic savings-to-GDP ratio increased from 30.5% in the 1970s to 45.9% in the 2000s (Yang, Zhang, and Zhou 2011).”
- Income inequality as a cause of the Great Recession?: A survey of current debates (2012, background): “Higher government consumption is found to have a positive impact on consumption via three channels: First, through its direct effect; second, through its mediating effect on households precautionary savings (Qi and Prime, 2009, Barnett and Brooks, 2010); and third, through income redistribution to l”
- Demystifying the Chinese Housing Boom (2015, unknown): “According to Yang et al. (2013), the gross national savings as a percentage of GDP averaged 35% during the 1980s, 41% during the 1990s, and surged to over 50% in the first decade of the twenty- first century.”
- Risks in China's Financial System (2018, unknown): “The corporate sector accounts for about half of the non- government savings (Yang, Zhang, and Zhou, 2011).”