High Savings, Investment and Growth Rate

Li Yang

Abstract:

The high-level start of the investment rate and the rising investment growth rate in China’s current round of economic fluctuations have caused widespread concern, because they were at the root of the partial economic overheating that occurred during the period of 2002-2005. Therefore, economists believe that to put prices under control and to stabilize economic growth by curtailing investment is the sensible choice for macroeconomic control. The three “highs” – high savings, investment and economic growth rates – caused bychanges in the population – are what we call“population dividend”.

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