The Long-run Relationship between Savings and Investment in Transition Economies: Empirical Evidence from China
This study examines the underlying patterns of savings and investments in China for the period 1978 – 2008. The institutional changes that occurred as a result of the 1978 economic reforms programme brought about profound changes to the characteristics of savings and investments in China. The paper finds that household savings while high, do not explain China’s high savings rate as a whole. High s