Understanding High Saving Rate in China
AbstractThis paper presents a detailed analysis of the Chinese saving rate based on the flow of funds data. It finds that the most widely adopted view of precautionary saving, which is regarded as the top reason for maintaining a high saving rate in China, is misleading because this conclusion is drawn from the household survey data. In fact, the household saving rate has declined dramatically since the mid-1990s, as is observed from the flow of funds framework. The high national saving rate is attributed to the increasing shares of both government and corporation disposable incomes. Insufficient consumption demand is caused by the persistent decrease in percentage share of household to national disposable income. Government- directed income redistribution urgently needs to be improved to accelerate consumption, which in turn would make the Chinese economy less investment-led and help to reduce the current account surplus. Copyright The official journal of The Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS) 2007.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Institute of World Economics and Politics, Chinese Academy of Social Sciences in its journal China & World Economy.
Volume (Year): 15 (2007)
Issue (Month): 1 ()
Contact details of provider:
Postal: No. 5 Jian Guo Men Nei Street, Beijing 100732
Phone: (0086-10) 65126105
Fax: (0086-10) 65126105
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1671-2234
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Shang-Jin Wei & Xiaobo Zhang, 2011.
"The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China,"
Journal of Political Economy,
University of Chicago Press, vol. 119(3), pages 511 - 564.
- Shang-Jin Wei & Xiaobo Zhang, 2009. "The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China," NBER Working Papers 15093, National Bureau of Economic Research, Inc.
- Dennis Tao Yang & Junsen Zhang & Shaojie Zhou, 2010.
"Why are Saving Rates so High in China?,"
312010, Hong Kong Institute for Monetary Research.
- Yang, Dennis Tao & Zhang, Junsen & Zhou, Shaojie, 2011. "Why Are Saving Rates So High in China?," IZA Discussion Papers 5465, Institute for the Study of Labor (IZA).
- Dennis Tao Yang & Junsen Zhang & Shaojie Zhou, 2011. "Why Are Saving Rates so High in China?," NBER Working Papers 16771, National Bureau of Economic Research, Inc.
- Xin Wang & Yi Wen, 2011.
"Can rising housing prices explain China’s high household saving rate?,"
Federal Reserve Bank of St. Louis, issue Mar, pages 67-88.
- Xin Wang & Yi Wen, 2010. "Can rising housing prices explain China’s high household saving rate?," Working Papers 2010-048, Federal Reserve Bank of St. Louis.
- Knight, John & Wang, Wei, 2011.
"China’s Macroeconomic Imbalances: Causes and Consequences,"
BOFIT Discussion Papers
15/2011, Bank of Finland, Institute for Economies in Transition.
- John Knight & Wei Wang, 2011. "China’s Macroeconomic Imbalances: Causes and Consequences," The World Economy, Wiley Blackwell, vol. 34(9), pages 1476-1506, 09.
- Ricardo Molero Simarro, 2011. "Functional Distribution of Income and Economic Growth in the Chinese Economy, 1978-2007," Working Papers 168, Department of Economics, SOAS, University of London, UK.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.