Why Are Saving Rates So High in China?
This chapter examines the high savings rate in China, beginning with an overview of the major trends in Chinese national saving in the past three decades. Drawing data from the World Development Indicators, China's Flow of Funds Accounts, and other sources of aggregate statistics, it compares the aggregate saving in China with that of representative economies and major country groups. The chapter then considers the factors behind the rising savings of the government, corporate, and household sectors, focusing on the period of 1999 to 2007.
Shaojie Zhou would like to acknowledge the financial support from the National Natural Science Foundation of China (Project No. 70903039), and Humanities and Social Sciences Research Foundation of Minister of Education of China (Project No. 09YJC790162).
Dennis Tao Yang would like to acknowledge the financial support from the Research Grants Council of the Hong Kong Special Administrative Region, China (Project No. CUHK 453008). He is also grateful to the research support provided by Hong Kong Institute of Monetary Research, where much research was done when he served as a Research Fellow.
Junsen Zhang thanks the partial financial support from the Natural Science Foundation of China (Project No. 70933001).