An Empirical Analysis of the Relationship Between Chinese GDP and Deposit Savings

The phenomenon of a high savings rate in China has been receiving much attention from the academic and policy communities. The research on the causes of high savings rates has become increasingly diversified, including studies on the impact of GDP on savings. In this paper, we use the econometric analysis method and Eviews software to analyze the data of total savings and Gross Domestic Product (GDP) in China from 1952 to 2021. It establishes a simple linear regression model, which indicates the existence of heteroscedasticity and autocorrelation. To eliminate heteroscedasticity, it takes the logarithm of both sides of the equation and uses the Generalized Method of Moments (GMM) to eliminate autocorrelation, which results in an ideal GMM regression model. Our research shows that the value of GDP in China does not affect the total savings, but the growth rate of GDP is significantly positively correlated with the growth rate of total savings. Based on these findings, we propose some relevant policy recommendations.