Testing And Research On China's High Savings Rate

Since the1990s, with the rapid development of China’s economy, the savingsrate has been improved at the same time.Savings is the largest and most stable part inthe capital source, so it is very important for the development of a country’s economy.High savings rate, however, brings a series of problems in our country, especially thestructural contradiction. With the increased savings rate, however, China’s finalconsumption rate is lowering in the proportion of GDP, reflecting the lack of domesticconsumption in China. High savings rate and low consumption rate lead China’slong-term economic growth to depend on investment and exports. Over the years, thegrowth of investment in fixed assets in our country has been significantly more thanthe economic growth, and the structural investment overheating is obvious. On theother hand, dependence on exports for a long time can not only lead both parties tomore disputes and friction, but also more vulnerable to the effects of global economicfluctuations. It is not conducive to the peaceful development for our country.In the long run, the sustainable development of the country’s economy hasdepended on expanding domestic demand. Therefore, it is great significant for theeconomic transformation and sustainable development of China to probe into thecause of the high savings rate and countermeasures of resolving high savings rate inChinaThe first part of the article is the introduction, which introduces the topicbackground, the research significance, the research status at home and abroad, thearticle research and the technical route. Through the understanding of the economicdevelopment in our country at present stage, we know that the insufficientconsumption which hinders the economic development has brought the structuralcontradictions, and insufficient consumption is mainly because of high saving inChina. Then, we get the article’s research significance.The second chapter is the theoretical part. First of all, it generalizes the savings theory, reviews the development of savings theory for hundreds of years, and thenintroduces the reasonable savings theory which provides theory support for the belowreasonable savings rate model.The third chapter is the theoretical analysis of factors which affect the savings ratein China, mainly including interest rates, income distribution system, social security,income level.The fourth chapter verifies China’s high savings rate. First, through the study ofthe history of China’s savings rate and international comparison, we reveal the savingsrate is high. Second, it is the empirical research. We establish the reasonable savingmodel on the basis of the solow growth model and AK model, and then we combinethe model with the date of China’s savings rate to do the empirical research forreasonable savings rate in our country. The conclusion is that China’s savings rate istoo high.The fifth chapter discusses the main reason for China’s high savings rate and thenegative impact on the economy in China.the sixth chapter is the policy suggestion which put forward a series ofreasonable suggestions on the basis of the main reasons for the excess saving in China,including: regulating the income distribution system, improving social security system,expanding investment channels, the transformation of government functions, theappropriate fiscal policy and monetary policy.