The Analysis And Suggestions On Difference Of Resident's Income Distribution Among China's Eastern,Middle And Western Areas

China has made great progress in the development of economy andsociety since the reform and open policy was carried out. As the same time,the difference of resident' s income distribution among areas has beenenlarged. The question that whether the difference is reasonable is directlyrelated with economic development and national solidarity, and has furtherinfluence on the realization of our country's socialistic modernization andpermanent stability. So, enough importance should be attached to thisproblem. Based on Chinese researchers' work, this paper investigated the changeson absolute and relative difference in income distribution among Eastern Area,Middle Area and Western Area from 1978— 2001. Using the latest andsystemic statistic data, this research combined statistical analysis withtheoretical analysis, and joined positive method with normative method. This paper drew four conclusions. First, the difference in incomedistribution among the eastern, middle and western areas had been enlargedsince 1978. Although the gap didn't spread obviously since 1990, currentdifference is very large and it shouldn't be enlarged. Second, there are manyfactors that accounting for the difference in income distribution among thethree areas. The main reasons include the difference in economic development,economic structure, historical and geographical conditions, and institutiontransformation. Third, the absolute level of difference in income distributionwill be enlarged in a long period of 20 or 30 years. However, the relativedifference won't change a lot. There is no U-shape and inversed U-shapechanges. The most probable curve of changes is wave – shape (sawtooth-shape). There is no sufficient evidence to draw conclusion on thetendency of far future. Fourth, difference in income distribution has doubleeffects. Too large difference will cause serious social outcomes. On the other IIhand, too small difference will impair economic efficiency. Thus, themoderation of difference is important. This paper made a preparatory researchon the standard of moderation of difference among three areas and proposedsome policy suggestion.