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Relationship Between the Savings Rate and Economic Growth of China

In: Business and Management

Submitted By sakib13
Words 1982
Pages 8
Relationship between the Savings Rate and Economic Growth of China
By: Muhammad Saddam Hossain

Institute of Business Administration,
Jahangirnagar University

Submitted to:
Dr. Shuddhasattwa Rafiq
Associate Professor, Institute of Business Administration, Jahangirnagar University

Submitted by:
Muhammad Saddam Hossain
Batch: 21st Class ID: 1565

Date of Submission: June 11, 2013

Institute of Business Administration,
Jahangirnagar University

1

Table of Contents:
Contents 1. Introduction 2. Savings Rate 3. China’s High Savings Rates 4. How to calculate Savings Rate a. Private saving b. Public saving c. National Saving d. Savings Rate 5. China’s Comparative Savings Rate 6. Relationship between the saving rate and economic growth 7. Savings Rate Vs Economic Growth of China 8. Conclusion Page 3 3 3 4 4 4 4 4 5 6 7 9

Illustrations:
Contents  Figure 1: National Saving Rate by Region  Figure 2: Relation Between savings rate and Growth  Figure 3: Saving and Investment Rate of China  Table 1: National Reserves by Countries Page 5 6 7 8

2

Introduction:
A savings rate is refers to the percentage of Gross Domestic Product (GDP) savings by households in a country. It indicates the financial state and growth of the country, as household saving is the main source of government borrowing to fund public services. It varies among countries and is influenced by various factors such as retirement age, borrowing constraints, income distribution over lifetime, demography and welfare state.

Savings Rate:
If we think more simply about savings rate, we can say that the amount a person or organization places in a savings account or similar vehicle as a percentage of total disposable income. Savings are important for long term financial stability as it gives a person or organization a cushion for bad times. The savings rate may be calculated at

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