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Chinese Household Income, Consumption and Savings

Author

Listed:
  • Kate Stratford

    (Reserve Bank of Australia)

  • Arianna Cowling

    (Reserve Bank of Australia)

Abstract

Household income and spending in China have grown rapidly over the past few decades, and income inequality has also risen. The various measures of China’s aggregate household saving rate have all increased since the 1990s, and variation in saving behaviour by income group suggests that increasing the income of poorer households in particular would boost aggregate consumption. Changes in Chinese household consumption patterns as incomes rise have the potential to lead to higher imports of services and food from Australia in the long run. However, uncertainty around the outlook for growth of Chinese household income, consumption and saving is increasing as economic growth moderates in China.

Suggested Citation

  • Kate Stratford & Arianna Cowling, 2016. "Chinese Household Income, Consumption and Savings," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 31-40, September.
    • Handle: RePEc:rba:rbabul:sep2016-04
    as

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    File URL: https://www.rba.gov.au/publications/bulletin/2016/sep/pdf/rba-bulletin-2016-09-chinese-household-income-consumption-and-savings.pdf
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    References listed on IDEAS

    as
    1. Marcos D. Chamon & Eswar S. Prasad, 2010. "Why Are Saving Rates of Urban Households in China Rising?," American Economic Journal: Macroeconomics, American Economic Association, vol. 2(1), pages 93-130, January.
    2. Shang-Jin Wei & Xiaobo Zhang, 2011. "The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China," Journal of Political Economy, University of Chicago Press, vol. 119(3), pages 511-564.
    3. Ivan Roberts & Trent Saunders & Gareth Spence & Natasha Cassidy, 2016. "China's Evolving Demand for Commodities," RBA Annual Conference Volume (Discontinued), in: Iris Day & John Simon (ed.),Structural Change in China: Implications for Australia and the World, Reserve Bank of Australia.
    4. Gerard Kelly, 2014. "Chinese Rebalancing and Australian Exports," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 23-30, December.
    5. Meng, Xin, 2003. "Unemployment, consumption smoothing, and precautionary saving in urban China," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 465-485, September.
    6. Guonan Ma & Ivan Roberts & Gerard Kelly, 2016. "A Rebalancing Chinese Economy: Challenges and International Implications," RBA Annual Conference Volume (Discontinued), in: Iris Day & John Simon (ed.),Structural Change in China: Implications for Australia and the World, Reserve Bank of Australia.
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    Cited by:

    1. Tani, Massimiliano & Wen, Xin & Cheng, Zhiming, 2023. "Daughters, Savings and Household Finances," IZA Discussion Papers 16440, Institute of Labor Economics (IZA).
    2. M. J. Hossain & A. K. M. Abdullah Al-Amin, 2019. "Non-farm Income and Consumption Expenditures in Rural Bangladesh: Empirical Evidence from Multilevel Regression Modelling," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(2), pages 377-396, June.
    3. Marinko Skare & Luis A. Gil-Alana & Gloria Claudio-Quiroga & Romina Pržiklas Družeta, 2021. "Income inequality in China 1952–2017: persistence and main determinants," Oeconomia Copernicana, Institute of Economic Research, vol. 12(4), pages 863-888, December.
    4. Marandici, Ion, 2019. "Making it in China: The determinants of economic success in a socialist market system," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 89-107.

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