1) a. Southeast Asia also had high rates of investment and saving during 1980s1990s. Why arent…

1) a. Southeast Asia also had high rates of investment and
saving during 1980s1990s. Why arent they as successful as in
Northeast Asia?
b. We know that since 2001 after China joined the WTO, there has
been a mismatch between Chinese saving and investment. Please use
the domestic/external balance equation to explain China’s
persistent surplus since 2001.
c. According to Yang (2012), why saving has been too high in
China since 2001? Discuss age composition, demographic, lack of
social safety nets, and backward financial institutions as possible
causes of high saving rates.

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