Distribution In Economic Growth: Analysis And Evidence From China

Income distribution in economic growth is a theoretical and practical research topic, which is also closely related to the national development strategy and the economic life of the people, especially for China that is the largest developing country in the world. Since the reform and opening-up, China's economy has grown in the background of the economic transition and the dual economic structure transformation. According to the calculation, with the economic growth in China, the income level of resident greatly increases as well as the income gap between the residents becomes wider, which has got over the internationally recognized warning line. The principle of the history and logic, theory and practice, qualitative and quantitative followed, the article is focus on this subject on the basis of theory and reality with the analysis methods and tools of development economics, institutional economics and econometrics.Firstly, this paper starts to summarize the growth and distribution theory from the angle of history of economy thought, which is taken as the theoretical basis and the logical starting point. With the equity and efficiency of the economic growth and income distribution analyzed, such a view that fair rules and start are the best ways to realize efficiency is pointed out. Next, the effects of some factors such as economic growth stage, economic fluctuation, economic structure, technical progress, human capital and government behavior on income distribution are analyzed in a multidimensional framework. Furtherly, international trade and FDI have some influence on income distribution.Next, we use the data in China in detail empirical research. With the calculation of social welfare function, we believe that China's income distribution in economic growth is efficient, as well as China exists kuznets inverted U curve and income gap is in the rapidly growing stage. Through a panel data measurement model, we found that the dual economic structure, foreign trade, finance and education of city-biased policy are the reasons for the deterioration of income distribution pattern in China.Finally, learning the experiences and lessons from other countries or regions, we think that the establishment of the sharing economic growth mechanism and the further deepen reform of the income distribution system are the fundamental ways to optimize the income distribution in China.