 Population aging and saving: Evidence from ChinaDong‐Hyeon Kim, Peiyao Liu and Shu‐Chin Lin Review of Development Economics, 2024, vol. 28, issue 4, 1494-1521 Abstract: Saving is a main source of financing capital and R&D investment, which can facilitate economic growth and development. Saving also acts as a buffer against uncertainty and external shocks, which can smooth growth volatility and promote economic growth. Thus understanding the determination of saving is vital for policymaking. This paper evaluates the saving consequence of population aging in China, a fast growing economy that has been experiencing rapid population aging with high saving rates. However, whether and how population aging affects saving remains controversial. Instead of verifying whether population aging increases or decreases saving, this paper takes a step further to examine potential nonlinearity in the nexus, which allows one to address the reason for inconclusiveness. Using China's provincial data over the period 1989–2019, it indeed finds significant existence of nonlinearity. Household saving follows an inverted‐U process with population aging. The effect holds for regions with moderate saving rates. For regions with the least and highest saving rates, household saving follows a U‐shaped process. Similar results are found for total saving. Date: 2024 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:rdevec:v:28:y:2024:i:4:p:1494-1521 Ordering information: This journal article can be ordered from Access Statistics for this article Review of Development Economics is currently edited by E. Kwan Choi More articles in Review of Development Economics from Wiley Blackwell |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.