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Why Is China's Saving Rate So High? A Comparative Study of Cross-Country Panel Data: Working Paper 2010-07

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  • Juann H. Hung
  • Rong Qian

Abstract

This paper uses a large cross-country panel dataset to estimate models of national saving rates and addresses two related issues. First, to what extent can China’s saving rate be explained by models of saving rates? Second, what are the factors responsible for China’s extraordinarily high saving rates? We find that our benchmark models explain about 72 to 76 percent of China’s national saving rate during 1990-2007, depending on whether China is included in the dataset. China’s national saving rate during that period is higher than the predictions of those

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  • Juann H. Hung & Rong Qian, 2010. "Why Is China's Saving Rate So High? A Comparative Study of Cross-Country Panel Data: Working Paper 2010-07," Working Papers 21920, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:21920
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    2. Chang, Xiao & An, Tongliang & Tam, Pui Sun & Gu, Xinhua, 2020. "National savings rate and sectoral income distribution: An empirical look at China," China Economic Review, Elsevier, vol. 61(C).
    3. Li Xian Liu & Milind Sathye, 2019. "Bank Interest Rate Margin, Portfolio Composition and Institutional Constraints," JRFM, MDPI, vol. 12(3), pages 1-21, July.
    4. K.B. Oh & Xuebin Chen & Jianmei Wang & Geoffrey R. Durden & Nicole El-Haber, 2011. "China’s Changing Demographics and their Influence on Financial Markets," Chapters, in: Lilai Xu (ed.), China’s Economy in the Post-WTO Environment, chapter 3, Edward Elgar Publishing.
    5. Kevin Luo & Tomoko Kinugasa, 2020. "Challenges for China’s economic development: the saving glut and policy implication," International Journal of Economic Policy Studies, Springer, vol. 14(1), pages 47-75, February.
    6. Ding Ding & Mr. Waikei R Lam & Mr. Shanaka J Peiris, 2014. "Future of Asia’s Finance: How Can it Meet Challenges of Demographic Change and Infrastructure Needs?," IMF Working Papers 2014/126, International Monetary Fund.
    7. Arslan Razmi, 2013. "Bretton Woods II and the East Asian Emerging Economies: Lazarus, Phoenix, or Humpty Dumpty?," International Economic Journal, Taylor & Francis Journals, vol. 27(3), pages 321-345, September.

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