|
If you are seeing this message, you may be experiencing temporary network problems. Please wait a few minutes and refresh the page. If the problem persists, you may wish to report it to your local Network Manager.
It is also possible that your web browser is not configured or not able to display style sheets. In this case, although the visual presentation will be degraded, the site should continue to be functional. We recommend using the latest version of Microsoft or Mozilla web browser to help minimise these problems.
Wiley InterScience | ||||||||||||
  China & World EconomyVolume 15 Issue 1, Pages 1 - 13 Published Online: 5 Feb 2007 © 2010 Institute of World Economics and Politics, Chinese Academy of Social Sciences
Abstract | References | Full Text: PDF (Size: 134K) | Related Articles | Citation Tracking  Understanding High Saving Rate in China The authors appreciate the comments given by Dr. Yu Yongding on the first draft of the paper in Chinese. Copyright The official journal of The Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS) 2007 KEYWORDS flow of funds • income distribution • saving rate Abstract
This 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. (Edited by Zhinan Zhang) | 
| |||||||||||
