Savings and growth relationship: Comparative analysis of China and Turkey

Domestic savings in economies are the most important resource that underdeveloped and developing countries can reduce their dependence on external resources and save the country from a huge debt burden and finance their investments. Countries that have managed to invest with domestic savings without the need for external resources will be able to achieve more stable and sustainable economic growth as they will be less affected by external factors. But Turkey's savings problem, started to increase after 2000 and still continues today. This saving deficit will increase the dependency on external resources and widen the borrowing rate. Therefore, sustainable economic growth could not be achieved in Turkey. On the other hand, it is necessary to investigate the reasons why China, which is the leading country in terms of saving rates in the world, achieves these savings rates and how they turn these savings into stable economic growth. In this study, first of all, the concept of saving, the importance of savings in the economy and the place of the effects of savings on economic growth and the effects of savings on economic growth in different schools of thought will be examined. In the second part, the reform process of the Chinese economy, especially after 1980, and the positive and negative effects of these reforms on savings will be explored. In the third part, he lived in Turkey for many years of trouble-saving economy and the policies it has implemented in order to solve these problems will be examined. In the last section, starting from the policies applied in China, to solve the saving problem in Turkey and to ensure the creation of resources for sustainable growth in Turkey will be made in different policy proposals.