A Study On The Relationship Between Household Saving And Income In China

Household saving is an important component of social saving,and animportant resource for economic growth. Since the reformation of china's economy,household income have increased greatly,with the increase of household income,Chinese resident's saving begins to rise continually. If the household saving increases at normal speed,it will help to accumulate capital for economy growth and adjust the circulation of money and commodity. But in recent years,household saving in china has increased so fast that the balance of household saving becomes more and more huge. Up to Apr. 2001,the balance of household saving in china has been over 7,970 billion,this amount exceeds china's GDP in 1998,and is about 89 percent of china's GDP in 2000. The unduly growing of household saving has handicap the normal operation of china economy,and has impress great pressure on the normal management of banks and other financial organizations in china. Under this condition,Chinese government began to establish many polices to reduce household savings,such as decreasing the interest rate,taxing the saving interest etc. Even though,china's household saving keeps increasing at high speed. Based on such situation,this paper studies the basic condition of household saving growth since the reformation of china,and analyses the causation of the fast growth of household saving in china,and studies the different relationship between saving and income between rural and urban residents and among residents in different area in china. At last,polices to reduce china's household saving based on the conclusions of this study is given by this paper.