Investment And Saving In China

Kuijs, Louis

doi:10.1596/1813-9450-3633

Cited by 115 publications

(52 citation statements)

References 2 publications

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“…Enterprises contributed 60 percent of the increase in gross national saving of 10 percentage points of GDP since the late 1990s. Government saving also increased considerably, by 5 percent of GDP since the late 1990s, while household saving fell slightly over the same period, to 17 percent of GDP, which is nonetheless a high level by international standards (Kuijs, 2005). Our estimates show that enterprises surpassed households as the main source of saving in China since 2000, with saving of nearly 22 percent of GDP in 2005, 5 percentage points larger than for households.…”

Section: How Is It Financed?mentioning

confidence: 66%

“…However, complete data are available through 2003 only and do not take account of the recent revision to GDP. Earlier analysis of saving and investment by Kuijs (2005) updated the data to 2004 and was undertaken before the recent GDP revision. This annex outlines the methods we used to adjust the data for the GDP revision and derive estimates post-2003.…”

Section: Annex I Investment and Saving Data By Sectormentioning

confidence: 99%

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What's Driving Investment in China?

Barnett

Brooks²

2006

IMF Working Papers

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Section: How Is It Financed?mentioning

confidence: 66%

Section: Annex I Investment and Saving Data By Sectormentioning

confidence: 99%

What's Driving Investment in China?

Barnett

Brooks²

2006

IMF Working Papers

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“…Kuijs (2005Kuijs ( , 2006 argues that the extraordinarily high aggregate savings rate in China is primarily driven by corporate savings. 9 The high level of enterprise saving required to finance high levels of investment has been facilitated by a low-dividend policy.…”

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confidence: 99%

The Evolving Role of China and India in the Global Financial System

Lane

Schmukler

2007

Open Econ Rev

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Three main features characterize the international financial integration of China and India. First, while only having a small global share of privately-held external assets and liabilities, these countries are large holders of official reserves. Second, their international balance sheets are highly asymmetric: both are "short equity, long debt." Third, China and India have improved their net external positions over the last decade although neoclassical models would predict them to be net borrowers. We argue that domestic financial policies are key to understanding these patterns and the future role of China in the international financial system.

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“…13 We mentioned already the intention of the Chinese government to shift spending from investment to social spending and to oversee "an increased role for private consumption" (Kuijs, 2005). The IMF's view, as stated in its Asia Pacific Regional Economic Outlook (2006), is that raising private consumption in emerging Asia plays a crucial role both for achieving sustainable growth in the region and for reducing the global imbalances, as observed through a comparison of current account figures across countries.…”

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confidence: 99%

High Growth and Low Consumption in East Asia: How to Improve Welfare While Avoiding Financial Failures

Rochon

Feltenstein²,

Shamloo³

2007

IMF Working Papers

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This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper analyzes certain policies that are typical of a number of rapidly growing East Asian countries in which a fixed exchange rate, combined with a surplus labor market, has made domestic assets relatively inexpensive, generating high rates of FDI as well as domestic capital formation. This "investment hunger" can lead to unanticipated declines in the returns to investment, and resulting financial insolvencies. Private consumption remains low and there are concerns that high savings rates cannot be sustained.We construct a dynamic general equilibrium model and apply it to a stylized Asian economy, loosely based upon China. We calibrate a benchmark equilibrium, and carry out various counterfactual simulations to analyze alternative policies, in particular tax cuts and exchange rate revaluations, as instruments in increasing private consumption while avoiding bank failures. JEL Classification Numbers: D58, E44, F37, G21

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Investment And Saving In China

Abstract: I thank Bert Hofman for encouragement and comments, and Homi Kharas and Tao Wang for comments on an earlier draft. I also thank Pieter Bottelier, whose comments will be reflected in a revised version.

Cited by 115 publications

References 2 publications

What's Driving Investment in China?

What's Driving Investment in China?

The Evolving Role of China and India in the Global Financial System

High Growth and Low Consumption in East Asia: How to Improve Welfare While Avoiding Financial Failures

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