China's growth is characterized by massive capital accumulation, made possible by high and increasing domestic savings …. In this paper we develop a model with the aim of explaining why savings rates have been high and increasing, and we … investigate the general equilibrium effects on capital accumulation and growth. We show that increased savings and capital …

catch-up parameters, we find an investment and a saving puzzle: regions that caught up relative to the rest of China seem to …While China has been pivotal in discussions and academic research on global imbalances, little is known about … the regional level inside China. We follow up by identifying the drivers of this pattern using the methodology developed …