Study on the motivation for saving behavior of Chinese urban residents

Abstract

This article uses data of Chinese urban residents in 1980-2007 to test three types of motivations of residents' saving behavior which are life-cycle motivation, bequest motivation and the precautionary motivation. It turns out these three categories of savings motivations all have an impact on the saving behavior of Chinese urban residents. In addition, with China's opening up and ensuing growing external risks, precautionary savings motivation of Chinese urban residents accordingly enhances. In this regard, this paper proposes recommendations on policies to promote consumption and reduces the savings. © 2011 Springer-Verlag Berlin Heidelberg.