Xiao as a way to the future capital leadership of the Asian-Pacific region founded on Confucian values (based on the Chinese example)
Xiao as a way to the future capital leadership of the Asian-Pacific region founded on Confucian values (based on the Chinese example)

Summary/Abstract: In this paper we analyse the link between so high savings rate in China and the cultural values influencing the behaviour of Chinese citizens. We try to answer the question why any of the existing models describing the savings behaviour does not work in China. Although the subject is very complex, we suggest that xiao is reflected in the high savings rates and constantly rising values of private savings through the mental accounting process – a phenomenon described by R. Thaler and then by H. Sherfin. We also present the possible directions of the future Chinese capital flows (arising from the capital accumulation) and their political consequences for the power of the region.

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