The Relationship Between Economic Growth And Income Inequality Under The Evolutionary Perspective

As Champernower and Cowell (1998) once wrote in Economic inequality and income distribution:"Economic inequality may not be the most important crisis which the whole world faces, but economic inequality is definitely a lasting and urgent problem." So, inequality is a vital problem of social economy in different periods of different countries. With economic growth and social development, social economic inequality problem becomes increasingly prominent in China, so it is much more significant and urgent to do the research on inequality. In view of the importance of inequalities in reality, the author conducts a study on the relationship between economic growth and income inequality.First of all, this paper introduces the related researches and theories including Kuznets’"Inverted-"U" theory", unequal dynamic evolution theory and unequal measure theory. According to the characteristics of these theories and the intermittent data the paper needs, this paper adopts the non-parameters kernel density estimation technology, generalized least square method and Thomas’ the group genie coefficient calculation method to carry on the research.Secondly, according to the data provide by "statistics yearbook of Lan Zhou", the author did an empirical analysis on the relationship between economic growth and unequal income in Lanzhou integrated with the three methods mentioned above. The conclusions are as follows: the relationship between economic growth and income inequality does exist in Lanzhou city in the process of economic development according to Kuznets’ Inverted U theory. At present, the relationship between economic growth and income inequality of LanZhou is at the left half part of the Inverted "U" curve, namely the rising stage, and the point of inflexion on the "U" curve will appear around in2050. The non-parameter kernel density estimation shows that internal gini coefficient numerical increases continuously in town, the income gap expand unceasingly. Internal gini coefficient has minor changes in rural areas; the income gap basically stays stable. Urban residents’internal income inequality is larger than rural residents, and distribution is relatively scattered, astringency features are not so obvious.Finally, the author predicted the status of economic growth and income inequality through relative income level and gini coefficient. The result indicated that the rural residents are in the state D, urban residents are in state A; the tread of per capita income inequality and inequality of rural residents are from D to A and then to B, the trend of per capita income and inequality in urban areas are from A to B.