Empirical Study Of Chinese High Savings Rate

Recently, the contribution of high corporate savings to China's high savings has been paid more and more attention. Many scholars have found that the high corporate savings is the main reason of China's high savings rate. Moreover, the high corporate savings have led to the decrease of fixed assets investments efficiency and effect of macro-control policies. As a result, researching on China's high corporate savings is valuable. Analyzing the causes of China's high corporate savings, giving suggestions to deal with them and thus providing the appropriate policies for lowering the high corporate savings are the premises of reducing the China's national savings rate, improving the fixed assets investments efficiency, strengthening the effect of macro-control policies.According to the related literature, there are few special studies on China's high corporate savings and most of the literatures about it usually give the causes directly without empirical evidences. Therefore this paper is devoted to analyzing the causes leading to China's high corporate savings and thus provides the foundation for giving effective suggestions on solving the China's high corporate savings. This paper analyzes the possible reasons of China's high corporate savings from the perspective of the composition by focusing on the corporate savings rate, i.e. ratio of corporate savings to profit, give the difference of corporate savings rate among different ownerships and industries and find the reason which lead to the higher corporate savings rate of those types as a basis for decreasing the those types of enterprise with higher corporate savings rate and improving the China's high corporate savings.This article examines the distribution characteristics of Chinese listed corporate savings by ownerships and industries, so as to find the factors that lead to the phenomenon of the Chinese high corporate savings rates from the perspective of the composition, and provide the underlying basis for making appropriate policy proposals for improving the situation of high corporate savings rates. In order to study the question, the author choose no-financial listed companies in the 2004-2009 period as analytical sample, adopt unbalanced panel data model as the tool for econometric analysis. The empirical findings show that the savings rate of non-state-owned company is relatively higher by the perspective of the composition of ownership and the savings rate of monopoly industries which doesn't include resource industries is relatively higher. Applying measures to lower the savings rate of these types of companies will help to solve the high corporate savings. Through the theoretical analysis and empirical studies, this paper also finds that the reason which lead to the higher savings rate of those types of companies, including the systematic difference of the internal factors influencing the savings rate and the different influence of the extraneous factors such as system environment, financing environment and so on. At last, according to the possible reasons which caused the higher savings rate, this paper provides the related policy proposals for improving the China's high corporate savings.