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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

The Reason for China's High Savings—Based on The Interpretation of Demographic Dividend

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DOI: 10.25236/ssehr.2018.173

Author(s)

Yu Jiajia, Quan Li, Han Yuqi

Corresponding Author

Han Yuqi

Abstract

This article regards the “demographic dividend” caused by demographic transition as an additional source of savings growth. The article first introduces the international standard population division and defines the existence of “demographic dividend” in China. Then, with the help of the Leff model, the relationship between the total dependency ratio, the child dependency ratio, the old-age dependency ratio, the economic growth rate and the huge savings of China is revealed. The empirical research shows that the total dependency ratio, the child dependency ratio, the old-age dependency ratio and the economic growth rate Both have a significant impact on savings, and the impact of total dependency ratio, child dependency ratio, and old-age dependency ratio on savings is more significant than economic growth. Finally, it is proposed that increasing the accumulation of human capital is an effective way to turn China's huge savings into investment.

Keywords

High Savings, Demographic Dividend, Dependency Ratio