China's Saving-investment Transformation Mechanism Analysis

Since reform and opening up, China's savings is showing a rapid growth. It cannot be denied that the high level of saving prompts the economy of the country, but in recent years the use of savings cannot be satisfied, such as the high rate of savings and the large scales of inflows of foreign capital. The efficiency of transformation is not high and fails to reflect the rapid growth of China's economy. The reason is mainly the unsmooth channels, so it is important to study the mechanism, the status and the existing problems, and find solutions to the problem in order to make China's economy sustained, rapid and healthy growth.By use of modem economics analysis methods, this paper describes the mechanism of S-I transforming and analyses the change of China's S-I transformation mechanism in details. Then, on the basis of the phenomena of the high rate of savings and the large scales of inflows of foreign capital, it measures the transforming efficiency and analyze the barriers in S-I transforming .At last, it concerns on how to improve the mechanism and clear the obstacles away in order to promote the transformation. The details are following:In part one, the paper points out the significance of topics, summed up the relevant literature review and introduces the theory of S-I. In part two, the paper describes the change of China's S-I transformation mechanism in details. In part three, the paper analyzes the efficiency of China's S-I transformation mechanism at present from the empirical perspective and further on this basis points out the obstacles. In part four, based on the analysis of China's current S-I transformation mechanism channels, we can see that the current obstacles are as follows: the barriers of credit market, the asymmetry of financial structure and economic structure , the imbalanced capital market and so on. In part five, according to the obstacles of China's S-I transformation mechanism, the paper imply that we should improve the efficiency of S-I transforming by clearing the obstacles away.This dissertation will firstly discuss the definition of saving and investment based on traditional theory of saving-investment transformation, and then analyses the transformation mechanism since Chinese foundation on the basis of the international experiences and researches. The paper clears up the status quo of Chinese saving, cites a large number of actual historical data, shows the efficient of China's S-I transformation mechanism by empirical analysis, reflects the conclusion and reasons of the low efficient in S-I transformation mechanism, and finally puts forward some strategies and suggestions in restructuring the mechanism.