Skip navigation
Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp014f16c517m
Title: The Chinese Savings Puzzle and Financial Market Development, 2002-2012
Authors: Chu, Hadley Holt
Advisors: Zaidi, Iqbal
Department: Economics
Class Year: 2015
Abstract: This paper studies a panel of Chinese provinces from 2002-2012 during which the urban household saving rate increased from roughly 25% to 30% nationally. It demonstrates that this increase is negatively associated with declining real interest rates and the limited growth of private lending. This negative relationship between proxies of financial market growth and saving rates indicates that Chinese households save to compensate for eroding real returns on savings deposits and limited access to credit. Potential policy implications of these results suggest that increasing the interest rate, reforming urban pensions, and increasing access to credit would mobilize private savings and stimulate domestic consumption.
Extent: 93 pages
URI: http://arks.princeton.edu/ark:/88435/dsp014f16c517m
Type of Material: Princeton University Senior Theses
Language: en_US
Appears in Collections:Economics, 1927-2016

Files in This Item:
File SizeFormat 
PUTheses2015-Chu_Hadley_Holt.pdf1.25 MBAdobe PDF    Request a copy


Items in Dataspace are protected by copyright, with all rights reserved, unless otherwise indicated.