The Influencing Factors Of China’s Saving Ratio:Empirical Study Based On Extreme Bounds Analysis Model

Since reform and opening, China has made remarkable high economic growth,but there are obvious structural problems. one of the outstanding performance is thefinal consumption rate showing downward trend in recent years. Corresponding tothis is the high household savings rate in China, almost all studies show thatChina’s household savings rate is higher than most countries and regions. Highsavings, low consumption characteristics result means Chinese economic growthdriven by investment and exports in long run, which not only increases the inherentinstability of economic performance, but also may bring a deeper problem.Therefore, the comprehensive and systematic research about the determinants ofhousehold savings rate in China has become a common concern on academic andpolicy-makers. This paper used EBA(Extreme Bounds Analysis) model estimationand test. Based on the data recorded in1992-2011and combined with the domesticand foreign relevant research results, it selected18condition factorscomprehensively to do a empirical research on the factors that affect the householdsaving rate in China. On the basis of co-integration test, we get to know the factorsvia robustness test. The research results prove that urbanization level, Ginicoefficient, the proportion of financial expenditure in GDP, and the proportion ofexpenditure for social security in fiscal expenditure have a robust influence onhousehold saving rate. There exists the long-term equilibrium relationship betweenurbanization level and household saving rate. According to the research, this paperputs forward some advice and measures to keep the savings rate in a reasonable andmoderate level so that our country can realize a steady and rapid development.