Why are saving rates so high in China?

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 5465

Classification and Topics

• Classification: Wirtschaft ; Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making‡ ; Macroeconomics: Consumption; Saving; Wealth ; Demographic Economics: General
• Subject: aggregate saving ; international comparison ; household behavior ; demographic structure ; China ; Sozialprodukt ; Sparen ; Privater Haushalt ; Unternehmen ; Staat ; China

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Yang, Dennis Tao ; Zhang, Junsen ; Zhou, Shaojie
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/46096
• URN: urn:nbn:de:101:1-201104113387
• Last update: 10.03.2025, 11:41 AM CET