The Empirical Research On Income Gap And Economic Growth Of Shandong

Since the beginning of reform and opening up, Shandong has made remarkable economic development with the policy that "Let some people get rich first" advocated by Deng Xiaoping. This thought is a distribution of income ideological thinking, or it can be said that is the original theory of income distribution on the China's basic national conditions. However, this imperfect theory of income distribution also left us a heavy burden. Economic grows, but economic development is still far from being synchronized. Even the defects caused by various economic distortions of the development may destroy the fruits of reform and opening up. The neglected attitude to the income distribution theory will threaten the nation's survival, development and long-term peace and stability. The effort of this paper is to clarify the reasons and specific performance of the widening gap in income distribution in Shandong Province and to analyze the relationship between economic growth and income gap. Under the background of economic growth, which caused a widening income gap? With improving the disparities in income distribution, which would facilitate the sustained economic development in Shandong? Under this premise, we seriously reflect and seek the way to the harmonious development between them.First, the article begins with the current situation of the income gap in Shandong. There are two basic aspects resulting in the gap: First, the market and the distribution methods by factors enhance the income gap. Second, during the transition to the market, some distortions in income distribution widen the gap. Then, we make the empirical analysis based on the facts of the dual economic structure of our province.Based on the analysis of the actual situation in Shandong, we make use of co-integration analysis and PLS regression analysis to answer the two main aspects. In the long term, what kinds of relationships exist between Shandong's economic growth and income gap and which factors have influenced on Shandong's economic growth and income gap.Finally, from a dynamic perspective, we make some policy recommendations for Shandong provincial government and relevant departments to solve all problems of the income gap, to ease conflicts about income gap with certain useful inspiration in wider scope.