The Impact of Pension Insurance on Consumption: Evidence from China

Zitong Wu ()
Additional contact information
Zitong Wu: Xi’an Jiaotong-Liverpool University, School of Humanities and Social Sciences

A chapter in Proceedings of the 2024 3rd International Conference on Public Service, Economic Management and Sustainable Development (PESD 2024), 2024, pp 87-94 from Springer

Abstract: Abstract Investment, export and consumption have been the three core forces driving China’s economic growth. In the past decade, the role of national consumption in driving the economy has become more and more obvious. Expanding consumer demand and increasing the consumption of the population is a common concern of the Chinese Government and many scholars today. In thinking about the causes of under consumption, the relationship between the social security system and consumption demand should not be overlooked, especially pension insurance, which accounts for the largest share of social insurance. A decline in youth and a growth in the elderly population, coupled with a shortage of workers, would unavoidably result in lower spending, especially in China. Therefore, the data in this paper comes from the National Bureau of Data and Statistics (NBDS), which includes pension insurance data and per capita consumption levels in 31 provinces from 2017-2022. The investigation is mainly carried out through the dependent variable (pension insurance fund income). Applying the knowledge of econometrics, the ordinary least squares method is used to find that the purchase of pension insurance has a dampening effect on consumption. With the general environment of economic transformation and aging, there is a greater need to continuously improve the pension insurance system to ensure that residents have a secure old age while looking for the possibility of pension insurance to stimulate new consumption.

Keywords: Consumption; Pension Insurance; Deposit Money (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:advbcp:978-94-6463-598-0_11

Ordering information: This item can be ordered from
http://www.springer.com/9789464635980

DOI: 10.2991/978-94-6463-598-0_11

Access Statistics for this chapter

More chapters in Advances in Economics, Business and Management Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().