Saving, Growth and Financial Market Imperfections in Transitional China

ISBN-13: 9783836429924 / Angielski / Miękka / 2007 / 112 str.

Liling Feng

Opis

In the last several decades, China has been experiencing dramatic economicdevelopment and institutional transition. One notable feature in this period isits very high saving rate. Although it is controversial whether high saving rateis beneficial to the economy or not, a fact widely accepted is that the highsaving rate has been playing an important role in shaping Chinas economy.But why do Chinese save so much? In this book, we try to analyze Chinassaving using the overlapping life cycle model, where the basic model isrevised to better match Chinas reality. Two dominant facts are emphasized inour analysis, i.e., transitory high income growth and abnormal demographychanges due to abnormal high birth rate. Besides, China, as a transitionaleconomy, is also characterized by financial market imperfections such asliquidity constraints. This book should help answer the questions:- To whatextent are Chinese consumers liquidity-constrained?- What are the reasonsand welfare impacts of liquidity constraints?The book is addressed to industrial analysts from finance and investment. It isalso directed towards researchers in economics and policy makers fromgovernments.