An alternative explanation for high saving in China: Rising inequality
Xinhua Gu; Pui Sun Tam; Guoqiang Li; Qingbin Zhao
Conference NameThe Fourth International Conference on The Chinese Economy: Present and Future
Source PublicationInternational review of economics & finance
Conference Date2017-12-16
Conference PlaceBeijing, P.R. China

This paper examines potential factors contributing to China's originally high and subsequently rising rate of aggregate saving prior to the global financial crisis. We find strong evidence that the high and rising level of income inequality in China is a significant mover of its savings glut. Behavioral inertia, income growth, industrial structure, and policy orientation (fiscal receipts and real interest rates) are also found to be responsible for high saving that, however, is somewhat alleviated by rising old dependency under population ageing. The policy implication of our findings is that a corrective redistribution of income in favor of the working class is urgently needed for China to boost consumption spending, make economic growth rely less on investment or trade, and help mitigate worsening global imbalances.

Indexed BySSCI
Fulltext Access
Citation statistics
Cited Times [WOS]:1   [WOS Record]     [Related Records in WOS]
Document TypeConference paper
AffiliationFaculty of Business Administration, University of Macau
First Author AffilicationFaculty of Business Administration
Recommended Citation
GB/T 7714
Xinhua Gu,Pui Sun Tam,Guoqiang Li,et al. An alternative explanation for high saving in China: Rising inequality[C],2018.
Files in This Item:
There are no files associated with this item.
Related Services
Recommend this item
Usage statistics
Export to Endnote
Google Scholar
Similar articles in Google Scholar
[Xinhua Gu]'s Articles
[Pui Sun Tam]'s Articles
[Guoqiang Li]'s Articles
Baidu academic
Similar articles in Baidu academic
[Xinhua Gu]'s Articles
[Pui Sun Tam]'s Articles
[Guoqiang Li]'s Articles
Bing Scholar
Similar articles in Bing Scholar
[Xinhua Gu]'s Articles
[Pui Sun Tam]'s Articles
[Guoqiang Li]'s Articles
Terms of Use
No data!
Social Bookmark/Share
All comments (0)
No comment.

Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.