China's high saving rate: Myth and reality

Economie Internationale

Volumn 122, Issue 2, 2010, Pages 5-40

  Ma, Guonan ^a   Yi, Wang ^b  

^a BANK FOR INTERNATIONAL SETTLEMENTS   (Switzerland)

^b Bank Of China   (China)

Author keywords

Chinese economy; Corporate, household and government saving; Saving

Indexed keywords

EID: 79952964076     PISSN: 12408095     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (69)

1. Asian Development Bank, 2009. Asian Development Outlook 2009: Rebalancing Asia's Growth, Manila.
2. Athukorala, P., Fukao., Yuan T., 2009. Labour market integration in China, in R Garnaut, L Song and W Woo edit China's New Place in a World in Crisis: Economic, Geopolitical and Environmental Dimensions, The Australian National University Press, 179-208.
3. Aziz, J., Cui L., 2007. Explaining China's low consumption: the neglected role of household income, IMF Working Paper, WP/07/181, Washington DC.
4. Bai, C., Hsieh C., Qian Y., 2006. Return to capital in China, NBER Working Papers 12755.
5. Bai, C., Qian Z., 2009. Factor income share in China: the story behind the statistics, Economic Research, 2009/03, 27-40.
6. Baker, M., Orsmond D., 2010. Household consumption trends in China, Reserve Bank of Australia Bulletin, March, 13-18.
7. Bayoumi, T., Tong H., Wei S., 2009. China's corporate savings is not a key driver for its current account surplus: a cross-country firm-level comparative perspective, draft paper presented at the HKMA conference "Financial reform, macro policy and currency internationalisation: the case of China", Hong Kong.
8. Bernanke, B., 2005. The global saving glut and the US current account defcit, speech at the Homer Jones Lecture, St Louis, 14 April.
9. Blanchard, O., Giavazzi F., 2005. Rebalancing growth in China: a three-handed approach", MIT Department of Economics Working Paper 05-32.
10. Brandt, L., Hsieh, C., Zhu, X., 2008. Growth and structural transformation in China, in L Brandt and T Rawski edit China's Great Economic Transformation, Cambridge University Press, pp 569-632.
11. Cai, F., 2007. The coming Lewis turning point and its policy implications, Reports on China's Population and Labour, 8, Social Science Academic Press, Beijing.
12. Cai, F., Park A., Yao Z., 2008. The Chinese labour market in the reform era, in L Brandt and T Rawski edit China's Great Economic Transformation, Cambridge University Press, 167-214.
13. Chamon, C., Prasad, E., 2008. Why are saving rates of urban households in China rising?, IMF Working Paper, WP/08/145, Washington DC.
14. Cheung, Y., Chinn, M., Fujii, E., 2009. China's current account and exchange rate, China's Growing Role in World Trade, pp. 231-271, edited by Robert Feenstra and Shing-Jin Wei, University of Chicago Press for NBER.
15. Chinn, M., Wei, S., 2009. A faith-based initiative meets the evidence: does a fexible exchange rate regime really facilitate current account adjustments?, draft.
16. Dollar, D., Wei, S., 2006. Das (wasted) Kapital: firm ownership and investment effciency in China, in NBER China Workshop, Cambridge, MA.
17. Du, J., He Q., Rui, O., 2010. Does Financial Deepening Promote Risk sharing in China? " Journal of the Asia Pacifc Economy, forthcoming.
18. Eichengreen, B., 2006. Global imbalance, demography and China, in M Balling, E Gnan and F Lierman (eds), Money, fnance and demography: the consequences of ageing, a volume for the 26th SUERF Colloquium in Lisbon.
19. Feng, J, He L., Sato H., 2009. Public pension and household saving: evidence from China, Bank of Finland BOTIT Discussion Papers, 2009/02.
20. Ferrucci, G., 2007. Saving behaviour and global imbalances: the role of emerging market economies, ECB Working Paper, 842, December.
21. Feldstein, M., 1998. Social security pension reform in China, NBER Working Paper, No 6794.
22. Gao, L., 2010. Achievements and challenges: 30 years of housing reforms in the People's Republic of China, ADB Economics Working Paper, 198, April.
23. Garnaut, R., 2006. The turning point in China's economic development, in R Garnaut and L Song edit The Turning Point in China's Economic Development, Australian National University Press, 1-11.
24. Goldstein, M, Lardy, N., 2009. The future of China's exchange rate policy, Policy Analyses in International Economics, 87, Peterson Institute for International Economics.
25. Golley, J., Tyers R., 2006. China's growth to 2030: demographic change and the labour supply constraint, in R Garnaut and L Song edit The Turning Point in China's Economic Development, Australian National University Press.
26. Guo, K., N'Diaye P., 2010. Determinants of China's private consumption: an international perspective, IMF Working Paper, 10/93.
27. Hale, G., Long C., 2010. What are the sources of fnancing of the Chinese frms?, HKIMR Working Papers, No. 19/2010.
28. Herd, R., Hu Y., Koen V., 2010. Providing greater old-age security in China, OECD Economics Working Papers, 750.
29. Heston, A., Sicular, T., 2008. China and development economics", in L Brandt and T Rawski edit China's Great Economic Transformation, Cambridge University Press, 27-67.
30. Hofman, B., Kuijs L., 2008. Balancing China's growth, in M Goldstein and N Lardy edit Debate China's Exchange Rate Policy, Peterson Institute for International Economics, Washington DC.
31. Horioka, Y., Wan J., 2008. Why does China save so much?, in B Eichengreen, C Wyplosz and Y Park (eds), China, Asia, and the new world economy, Oxford University Press, 371-91.
32. International Monetary Fund, 2006. World Economic Outlook: Globalisation and Infation, April, Washington DC.
33. International Monetary Fund, 2009. Asia and Pacifc Regional Economic Outlook: Building a Sustained Recovery, October, Washington DC.
34. Islam, N., Yokota K., 2008. Lewis growth model and China's industrialisation, Working Paper Series, 2008-17, The East Asian Development, Kitakyushu.
35. Jha, S., Prasad E., Terada-Hagiwra A., 2009. Saving in Asia and issues for rebalancing growth, ADB Economics Working Paper Series, 161, May, Manila.
36. Jin, Y., Li H., Wu B., 2010. Income inequality, status seeking and consumption, paper presented at the workshop of "Saving and investment in China" at Tsinghua University.
37. Kraay, A., 2000. Household saving in China, The World Bank Economic Review, Vol 14, 3, 545-570, September. (Pubitemid 32200976)
38. Kuijs, L., 2006. How will China's saving-investment balance evolve?, World Bank Policy Research Working Paper, 3958, July.
39. Lewis, W., 1954. Economic development with unlimited supplies of labour, The Manchester School, Vol 22, 2, 139-191.
40. Li, Y., Yin J., 2007. An exploration of the high Chinese saving, Economic Research, No 2007/06, 1-18.
41. Li, Z., Wu M., 2010. Who has financed the employer-provided pension in China?: a tripletrack story, draft.
42. Ma, G., 2007. Who pays China's bank restructuring bill?, Asian Economic Papers, No 6(1), pp 46-71, Winter, MIT Press, Cambridge.
43. Ma, G., Zhou H., 2009. China's evolving external wealth and rising creditor position, BIS Working Papers, 286, July, Basel.
44. Meng, X., 2003. Unemployment, consumption smoothing and precautionary saving in urban China, Journal of Comparative Economics, 31, 465-485. (Pubitemid 37239275)
45. Meng, X., Bai, N., 2007. How much have the wages of unskilled workers in China increased?, R Garnaut and L Song edit China: Linking Markets for Growth, Australian National University Press, 151-196.
46. Modigliani, F., Cao L., 2004. The Chinese saving puzzle and the life-cycle hypothesis, Journal of Economic Literature, Vol XLII, March 2004, 145-170. (Pubitemid 38671074)
47. Modigliani, F., Cohn R., 1979. Infation, rational valuation and the market, Financial Analysts Journal, 35(2), 24-44.
48. Moreno, R., Santos M., 2008. Pension systems in EME: implications for capital flows and financial markets, BIS Papers, 44, 45-69.
49. OECD, 2007. OECD Economic Outlook, 82, Special Chapter: "Corporate saving and investment: Recent trends and prospects, December, Paris.
50. Park, D., Shin K., 2009. Saving, investment and current account surplus in developing Asia, ADB Economics Working Paper Series, 158, April, Manila.
51. Salditt, F., Whiteford P., Adema W., 2007. Pension reform in China: progress and prospects, OECD Social, Employment and Migration Working Papers, 53, Paris.
52. Shen, B., Yan L., 2009. Development of consumer credit in China, in Household debt: implications for monetary policy and fnancial stability, BIS Papers, 46, Basel.
53. Schmidt-Hebbel, K., Serven L., 1996. Income inequality and aggregate saving, World Bank Policy Research Working Paper, 1561.
54. Song, Z, Storesletten K., Fzilibotti F., 2009. Growing like China, draft mimeo.
55. Song, Z., Yang D., 2010. Life cycle earnings and the rise in household saving in China, Manuscript, Department of Economics, Chinese University of Hong Kong.
56. Turner, P., 1988. Saving and investment, exchange rates and international imbalances: a comparison of the United States, Japan and Germany, Journal of the Japanese and International Economies, 2, 259-285.
57. Tyers, R., Lu F., 2008. Competition policy, corporate saving and China's current account surplus, ANU Working Papers in Economics and Commerce, Canberra.
58. Wang, F., Mason A., 2008. The demographic factor in China's transition, in L Brandt and T Rawski edit China's Great Economic Transformation, Cambridge University Press, 136-166.
59. Wang, X., 2010. Analysing China's grey income, Credit Suisse Equity Research, 6 August.
60. Wei, S., Zhang X., 2009. The competitive saving motive: evidence from rising sex ratios and saving rates in China, NBER Working Paper, 15093, Cambridge.
61. Wen, Yi., 2010. Saving and growth under borrowing constraints: explaining the "high saving rate" puzzle, draft paper.
62. Wiemer, C., 2008. The saving story behind China's trade imbalance, Lee Kuan Yew School of Public Policy Working Paper, 08/08, May, National University of Singapore.
63. Wolf, M., 2008. Fixing global fnance. John Hopkins University Press.
64. Wong, C., Bird R., 2008. China's fscal system: a work in progress, in L Brandt and T Rawski edit China's Great Economic Transformation, Cambridge University Press, 429-466.
65. Xu, X., 2008. Consumption risk-sharing in China, Economica 75, 326-341.
66. Zhang, H., 2008. Corporate governance and dividend policy: A comparison of Chinese frms listed in Hong Kong and in the Mainland, China Economic Review, 437-459.
67. Zhang, Z., 2009. Dark matters in China's current account, manuscript.
68. Zhou, X., 2005. Remarks about the return to capital of state-owed enterprises", Speech at the 2005 Annual Meeting of China Enterprise Leaders and the 20th Anniversary of China Entrepreneurs Magazine.
69. Zhou, X., 2009. Some Observations and Analyses on Savings Ratio, speech at the High Level Conference Hosted by Bank Negara Malaysia on 10 February 2009, Kuala Lumpur.