WILL HIGH HOUSEHOLD SAVING IN CHINA PERSIST? AN APPLICATION OF THE CONSPICUOUS CONSUMPTION THEORY

Xiaofen Chen and Lin Zhang
Additional contact information
Xiaofen Chen: University of Thrace, Greece
Lin Zhang: Truman State University, USA

The International Journal of Economic Behavior - IJEB, 2017, vol. 7, issue 1, 3-24

Abstract: Expanding from Veblen’s conspicuous consumption theory, this paper provides new explanations on China’s household saving behavior. Using provincial level data, it finds evidence that urbanization, increased mobility of the population, and a greater degree of openness all depress household saving, likely through higher conspicuous consumption. This result is robust with different estimators and specifications. Among the conventional explanatory variables, the paper finds support for the permanent income theory, but little evidence for the life cycle theory..

Keywords: conspicuous consumption; household saving Chinese economy; cultural changes; international openness; urbanization; population mobility. (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ijeb.faa.ro/download/506_1%20_16-08_%20-%20CHATZOUDES.pdf (application/pdf)
http://ijeb.faa.ro/en/article/Examining-the-Impact ... er-Behavior~506.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:but:ijebfa:v:7:y:2017:i:1:p:3-24

Access Statistics for this article

The International Journal of Economic Behavior - IJEB is currently edited by Fabio Musso

More articles in The International Journal of Economic Behavior - IJEB from Faculty of Business and Administration, University of Bucharest Contact information at EDIRC.
Bibliographic data for series maintained by Cosmin Catalin Olteanu ().