Analysis Of China’s Household Savings Rate Of Economic Growth Effect

Investment has been provided plenty of sources of funding by maintaining at a high household savings rate,it is also an important factor that China’s economy development remains the rate of rapid.More importantly.a steady stream of funds flow ensures the liquidity of financial institutions and enhances the stability of the bank.Swept through the continued spread of the global financial crisis in2008,global economic growth is slowing.As a foreign trade-dependent countries,the global economic slowdown on China’s ecomomy can not be overlooked. Therefore, changes in urban and rural residents’savings rate of China’s economic growth is an urgent need for stimulating domestic demand and keep our economy sound and rapid development. Take full account of our special "dual economic system." the status quo. towns and villages were established empirical model of the relationship between the household savings rate of change and economic growth, through an econometric analysis to estimate relevanteconomic meaning of the parameters, obtained through the analysis of the meaning of the relevant parameter values come to the conclusion of the article.The result concluded that the three decades since China’s reform and opening up the rural residents’savings rate has a strong negative impact on rural economic development; urban household savings rate has little effect on urban economic development, the overall impact is notsignificant. Finally, according to the conclusions of theoretical analysis and empirical analysis, the author puts forward some policy recommendations.A.Research conclusionsa. Changes in urban household savings rate has little effect on urban economic growth rate, while rural residents’savings rate changes hamper the development of rural economy.The article first obtained through theoretical derivation of the theoretical relationship between the household savings rate and economic growth and investment growth, and then based on the data collected, using the measurement methods to draw the economic growth rate of China’s urban and rural areas and urban and rural residents’savings rate, and urban and rural investment growthbetween the rate of an empirical model.Determine the choice of indicators by examining the coefficient was significant and thus removed is not a significant indicator of the presence of heteroscedasticity. through the weighted least squares method of correction. The last empirical model deduced a good illustration of the relationship between urban and rural residents’savings rate and the urban and rural economic growth.b. The savings deposits of residents in China is still inereasing,precautionary savings in the household savings deposits accounted for the proportion considerably. China’s rapid economic development, the income levels of urban and rural residents increased rapidly, but the high price of housing, health care, education or urban and rural residents of the future is full of variables. Faced with uncertainty about the future of urban and rural residents will inevitably choose Wujin pocket, save for prevention.Savings as a spontaneous act. if you want a policy instrument, making residents’ savings in the short term can have a great deal of change is not consistent with the reality; and China’s traditional culture has always been the "thrift" as virtues, so that the huge fluctuations of the savings rate of the urban and rural residents is not possible in the short term.c. Residents’savings on the great role of the financial system and capital markets must remain robust changes in the household savings rate, or they might set off a tremendous economic fluctuations, In today’s world of economic globalization, and even spread to the global. Said the savings rate remained stable, the savings rate in the period fluctuations should be in a reasonable range, rather than a dramatic change in the short term. The savings rate varies with the socio-economic development, whether the savings rate in an optimal range, the key depends on whether to meet the objective requirements of social and economic development, whether public economy and private economy in a balanced state of development. But in practice, this objective existence of an optimal range but not automatically, due to the intervention and disturbance of the savings in practice a variety of subjective factors, especially the phenomenon of public distribution behavior of distortions and seek corporate interests, making the savings rateit is difficult in an optimal range, always in a range close to the optimal range. So, how to encourage savings rate in an optimal range, how to make savings on the role in promoting economic development to a more healthy direction, measures must be taken from the following aspects:First, the optimization of multi-level the social security system; Second, the expansion of savings to the conversion of investment channels;, and actively explore new consumer markets, improve consumer credit policy. B.Policy Recommendationsa. An optimized multi-level social security system, to solve the worries of urban and rural residents. Optimization of multi-level social security system, especially to accelerate the building of rural residents in the social security system, which can reduce that part of the precautionary savings of rural residents, reducing the inhibition of the rural residents’savings rate of change on rural economic development.b. Expand the conversion channel savings to investment, so savings of urban and rural residents to smooth changes. Fluctuations in savings is too large unfavorable to the healthy development of the national economy, actively expand the conversion channel savings to investment to ensure that health savings reasonably be translated into investment.c. Actively explore new consumer markets, improve consumer credit policy, to stimulate domestic demand to promote the development of the national economy. With the improvement of living standards and the accelerated pace of life, some of the traditional concept of consumption can no longer meet today as the future consumption of the main force of the "80""90" on the needs of the times. Followed by some new consumption boom popular hot online shopping, selling of green food, fast food industry’s prosperity. Bring new consumer trend of convenience at the same time, it also brings some of the regulatory predicament, such as online fraud, green food Impurities, health and hygiene standards of the fast food industry is meeting its objectives. In addition, the main force as a consumer, with the exchange of Chinese and Western cultures, the contemporary "80""90" consumer attitudes are quietly undergoing change, and the quality of life also greatly improved, excessive consumption seems to have beenbecome the only consumer attitudes of their minds. Therefore, to improve consumer credit policies to promote the standardization of the new consumer market is to make efforts to solve a big problem.