Effects of age on saving motives of Chinese urban consumers
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The Chinese maintain one of the highest saving rates in the world. Although saving is generally regarded as a good practice, in a market economy, extremely high saving rates can constrain welfare enhancing consumption and growth of gross domestic product. Prior research on the saving behavior of Chinese consumers gives indirect evidence of various saving motives. This study, in contrast, examines factors associated with saving motives that are directly reported by consumers in a national survey in China. Findings indicate the three most frequently reported motives are saving for emergency, children’s education, and retirement. Mediation analysis results indicate that saving motives reported directly by Chinese survey participants have obvious life cycle patterns.
Yao, R., Xiao, J. J., & Liao, L. (2014). Effects of age on saving motives of Chinese urban consumers. Journal of Family and Economic Issues, 36(2), 224-238.