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Aging And Saving In Asia

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  • Charles Yuji Horioka

Abstract

In this paper, I analyse the impact of population aging on saving in Asia (with emphasis on Japan and China) and obtain the following findings: population aging will lead to declines in household, private, government and national saving rates, but to the extent that population aging is accompanied by absolute declines in population, investment rates will also decline. Moreover, countries always have the option of borrowing from abroad because all countries, even within the Asian region, will presumably not show simultaneous declines in saving. Therefore, the decline in saving caused by population aging will not necessarily spell disaster.

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  • Charles Yuji Horioka, 2010. "Aging And Saving In Asia," Pacific Economic Review, Wiley Blackwell, vol. 15(1), pages 46-55, February.
    • Handle: RePEc:bla:pacecr:v:15:y:2010:i:1:p:46-55
    DOI: 10.1111/j.1468-0106.2009.00489.x
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    References listed on IDEAS

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    1. Franco Modigliani & Shi Larry Cao, 2004. "The Chinese Saving Puzzle and the Life-Cycle Hypothesis," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 145-170, March.
    2. Charles Yuji Horioka, 2006. "The Dissaving of the Aged Revisited: The Case of Japan," ISER Discussion Paper 0665, Institute of Social and Economic Research, Osaka University.
    3. Charles Yuji Horioka, 2002. "Are the Japanese Selfish, Altruistic or Dynastic?," The Japanese Economic Review, Japanese Economic Association, vol. 53(1), pages 26-54, March.
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    Cited by:

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    2. Mali Chivakul & Bernhard Kassner, 2019. "Can Consumption Growth in China Keep Up as Investment Slows?," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(3), pages 381-412, September.
    3. Chadwick C. Curtis & Steven Lugauer & Nelson C. Mark, 2015. "Demographic Patterns and Household Saving in China," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(2), pages 58-94, April.
    4. Horag Choi & Steven Lugauer & Nelson C. Mark, 2017. "Precautionary Saving of Chinese and U.S. Households," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 49(4), pages 635-661, June.
    5. Jane Golley & Rod Tyers, 2011. "Contrasting Giants: Demographic Change and Economic Performance in China and India," Economics Discussion / Working Papers 11-04, The University of Western Australia, Department of Economics.
    6. Haidong Yuan & Chin-Hong Puah & Josephine Tan-Hwang Yau, 2023. "How Does the Ageing Population Affect China's Household Savings Rate? Empirical Study Based on China's Micro Household Data," Business and Economic Research, Macrothink Institute, vol. 13(4), pages 227-240, December.
    7. Jane Golley & Rod Tyers, 2012. "Demographic Dividends, Dependencies, and Economic Growth in China and India," Asian Economic Papers, MIT Press, vol. 11(3), pages 1-26, Fall.
    8. Du, Xuyang & Mohd, Saidatulakmal, 2024. "Urban–Rural heterogeneity in the effect of population ageing on the savings rate of urban and rural households in China," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 999-1010.
    9. Dong-Hyeon Kim & Peiyao Liu & Shu-Chin Lin, 2024. "The moderating role of financial development in the nexus between population aging and saving," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-32, April.
    10. Koji Yasuda, 2022. "Microdata analysis about the effects of health status and bequest motive on the elderly household assets in Japan," International Journal of Economic Policy Studies, Springer, vol. 16(1), pages 27-41, February.
    11. Mr. Il Houng Lee & Mr. Xu Qingjun & Mr. Murtaza H Syed, 2013. "China’s Demography and its Implications," IMF Working Papers 2013/082, International Monetary Fund.

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