Author(s)

Yiyang Cao ¹

Affiliation(s)

¹ Business School, East China University of Political Science and Law, Shanghai, China

Corresponding Author

Yiyang Cao

ABSTRACT

This article conducts empirical analysis on China's fiscal deficit, current account surplus, and private sector savings data after the reform and opening-up policy. It finds a clear positive correlation between private sector savings and fiscal deficit, and a significant negative correlation between current account surplus and government fiscal deficit. As a result, it concludes that in the short term, the government can improve the fiscal deficit through international trade policies; however, in the long term, addressing private sector savings remains essential for improvement.

KEYWORDS

Fiscal deficits, Trade surpluses, Private sector savings

CITE THIS PAPER

Yiyang Cao, Empirical analysis of China's fiscal deficit, trade surplus and private sector savings based on historical data. Financial Engineering and Risk Management (2024) Vol. 7: 188-200. DOI: http://dx.doi.org/10.23977/ferm.2024.070225.

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