12Received 06.05.2025. Revised 16.07.2025. Accepted 01.09.2025.
Abstract. After the Global Financial Crisis of 2007–2008, the world economy entered a phase of prolonged slowdown, which has become the “new normal” of global development. Despite this trend, Asian developing countries continue to be key drivers of global growth. However, their export-oriented growth model faces declining marginal returns, emphasizing the need to diversify growth sources – particularly by stimulating domestic consumption. This paper aims to quantitatively assess the impact of non-economic, country-specific factors – such as cultural, behavioral, and value-driven traits – on household consumption across ten major Asian economies: China, Japan, South Korea, India, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam. Using regression analysis with binary country variables, the study isolates socio-cultural influences from quantifiable economic determinants. Findings reveal that income growth and financial market development are primary drivers of household consumption. However, cultural predispositions remain strong, particularly the region’s high saving propensity. China tops the ranking in terms of cultural inclination toward saving, which hinders the success of its “dual circulation” strategy. Nevertheless, the data show a consistent decline in China’s saving tendency, suggesting the partial success of this policy. In contrast, countries like India and Thailand exhibit strengthening saving tendencies over time. Interestingly, the region has become more homogeneous in terms of consumption behavior, contradicting the hypothesis of growing heterogeneity. While consumption-constraining cultural features remain strong, their influence has slightly decreased, especially in wealthier nations. Still, many countries lack a clear trend toward consumption-driven growth. In conclusion, socio-cultural factors are critical in shaping private consumption dynamics. Understanding these dimensions is essential for policymakers aiming to transition from export-driven to consumption-led growth strategies in Asia.
Keywords: Asia, saving propensity, private consumption, economic growth, consumption model, consumer culture, regression analysis, dual circulation, households
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