National savings rate and sectoral income distribution: An empirical look at China
Pui Sun Tam and
China Economic Review, 2020, vol. 61, issue C
China's saving rate is found to be higher than predictions of empirical estimations based on conventional models of consumption. This problem has been recently admitted as arising from research attention biased towards household saving, yet savings by the corporate and public sectors (termed the non-household sector) may be more important in China. We find strong evidence that the biased distribution of national income towards the non-household sector is a key determinant of high aggregate saving in China, with this situation reinforced by its huge surplus labor. Such a sectoral perspective, albeit useful for elucidating Chinese savings, was previously used in descriptive discussions. This perspective is formally taken into account in our empirical study generating significant findings. We also show that high Chinese savings have more or less to do with other economic, demographic, and institutional factors as identified in the literature.
Keywords: China; Sectoral income distribution; Sectoral saving propensity; Sectoral and national saving rates (search for similar items in EconPapers)
JEL-codes: C33 D31 D91 E21 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:61:y:2020:i:c:s1043951x19300021
Access Statistics for this article
China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu
More articles in China Economic Review from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().