Income Distribution Gap Research Of Yunnan Province

The income distribution in the process of the economic growth is a timelessproblem in the economics. It caused the economics and even the sociology awidespread concern and heated debate. As a province of lots of ethnic minorities inthe southwest region in China, Yunnan Province has got a rapid growth of theeconomy since the new China has founded, especially after reforming and opening tothe outside world. However, along with the rapid economic growth, the problems ofthe income distribution have appeared. It has a similar side of our country, but alsohas its own characteristics. From the view of the value theory, this paper will discussthe characteristics of the income distribution along with the economic growth inYunnan Province during the planned economy era and the period in to marketeconomy shunt. Through the empirical analysis, to prove that a high-levelequalitarianism of the income distribution and the economic inefficiencies during theplanned economy era, and also prove the rapid growth of the economic and theinequality in the income distribution.The Functional Income Distribution and the Size Distribution of Income will beused in this paper to study the economic growth of the income distribution effect forYunnan Province. From the perspective of the Functional income distribution, thispaper uses the labor and capital as the two production factors because of thelimitation of the data acquisition. Beginning with the Corbusier-Douglas productionfunction, the labor and capital income share and their respective output elasticity willbe confirmer based on the empirical analysis in Yunnan Province in the middle of1990s. Then found that the actual share of the labor in less than its output elasticity,that is, the outputs less than the contributions, on the contrary, the income of thecapital is more than its contributions. Meanwhile, the Work Reward Share of nationalincome is below the national level since the1995s. When studying from theperspective of the Size Distribution of Income, it will be divided into four parts to beanalyzed they are the urban residents income structure, the rural residents incomestructure, the income of the urban and rural residents structure and the income of thewhole residents structure. At the same time, the time series analysis will be used toanalyze the relationship between the economic growth and income gap. Then we find that a positive correlation between income gap and economic growth, taha is, theeconomic growth does lead to the expansion of the income gap and the shrink of theincome gap could promote the growth of National Income.According to the analysis above, we can concludes that, through the measuressuch as vigorously develop the tertiary industry, realize sufficient obtain employment,strengthen the fiscal support for the education and consummate the social securitysystem, could be reached that the economic growth rapidly and the income differenceshorten.