Research on the Changes in Japan’s Savings Rate

Abstract

Japan’s savings rate was higher than other countries in the world in the past. However, since 1990s Japan’s saving rate has undergone significant changes, which had a downward trend. In order to explain these phenomena, we analyze the determinants of Japan's saving rate, and conclude that income factors, demographic factors and social security system factors have some bad impacts on the saving rate on the basis of the saving theory and analysis of the latest economic data. The changes in Japan’s saving rate not only affected its own economies, but also affected the world economy.