A Study On Resident's Income Growth And Its Influencing Factors In China

How to improve consumer purchasing power simultaneously is a big problem that our nation should face when economy grows with high speed. If resident's income cannot increase in harmony with economic growth, the great contrast between productivity and consumption level will obstruct economic sustainable development. This inconsistent development is not only one key reason that people cannot feel much about rapid economic growth and that available consumption demand being low level, but also hang-up for establishing harmonious society. Since central government has upgraded the strategy of establishing harmonious society, it is significant importance that how to increase resident's income level to match with economic growth, which is the aim of this article.The outline of this article is resident's income going with economic growth in our nation. This article systematically analyzes status of resident's income in our nation and factors influencing resident's income growth from aspects of macro-economic, micro-economic and institutional level, which provides theoretical and practical support for government to carry out relevant policies in favor of building harmonious society. In addition, this article demonstrates factors influencing income of urban resident and rural resident. There are conclusions as follows:Firstly, resident's income is not harmonious with economic developing level in China comparing with that in other countries. We have found that resident's income growth in China lags economic growth after investigating its status, in the perspective of structure of national income distribution, resident's income and the speed of its growth etc. Finally, the experience of other countries has suggested that the harmonious relationship between resident's income growth and economic growth plays an importance role in maintenance of social stability and economic sustainable development. Secondly, macro-economic factors influencing resident's income have been considered from aspects of general economic situation and macro-economic policies. The results suggest that the government should strengthen implementation of the policies on urbanization, industrialization and open to the outside, purposefully carry out the investment policy, control rural-urban income gap properly, and rectify the abnormal effect made by fiscal policy.Thirdly, micro-economic factors influencing the income of resident have been elucidated from aspects of urban region and rural region. For the income of urban resident, wage income and non-wage income have been considered. There are feasible ways to increase wage income by improving efficiency of enterprise esp. state-owned enterprise and distribution structure of enterprise, to gain non-wage income by broadening the channel of the capital resources and improving the quality of human capital. For the income of rural resident, the cost-benefit analysis and method of contribution of factors have been used and found that the income of rural resident can not increase rapidly due to comparatively low price of agricultural product, high cost for production and heavy burden on peasants, and considers that the government should improve the income level of rural resident by improving technology level, increasing extending degree of agricultural mechanism and promoting productivity enthusiasm.Finally, based on relevant theories of new institution economics, some systems influencing resident's income growth have been analyzed. Moreover, some suggestion has been proposed in order to improve resident's income based on the results above.