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Household Savings, the Stock Market, and Economic Growth in China

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  • Dayong Zhang
  • Yu Wu

Abstract

Previous research studies have suggested that rising optimism caused by booming stock prices has a significant negative impact on savings decisions. However, identifying this relationship clarifies only one side of the problem. It is also necessary to look at whether savings decisions can affect stock market performance. Moreover, another important question that policy makers may be interested in is how these savings and stock market investment decisions in the private sector can affect economic growth. This paper investigates this mechanism in China via a time-series approach and discusses further policy implications.

Suggested Citation

  • Dayong Zhang & Yu Wu, 2012. "Household Savings, the Stock Market, and Economic Growth in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 48(2), pages 44-58, March.
  • Handle: RePEc:mes:emfitr:v:48:y:2012:i:2:p:44-58
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    Cited by:

    1. repec:eco:journ1:2017-03-68 is not listed on IDEAS
    2. Yum K. Kwan & Jinyue Dong, 2014. "Stock Price Dynamics of China: What Do the Asset Markets Tell Us About the Chinese Utility Function?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 50(03), pages 77-108, May.

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