The Research Of Resident Income Gap And Economic Growth In Anhui Province

The speed of economic growth in China is rapid while resident income gap is widening since reform and opening, which attracted wide attention and research from foreign and domestic scholars. Income gap become one of the main factors affecting economic growth by the national economy through consumption and investment. At present, people become more aware of the importance of consumer, which is the fundamental driving force of economic growth especially in the aftermath of the financial crisis, therefore, consumer regarded as a link to the study of the distribution of income on economic growth is of great theoretical and practical significance. Anhui is a major agricultural province, which located in central China. The situation of income gap, to some extent, reflects the overall in the central region. In this paper, Anhui Province have been studied and analyzed.This paper firstly reviews the international research on resident income gap and economic growth. Then I make use of relevant statistical data on the status of Anhui Province to have a deep research on the resident income gap. Next, I contact consumer demand with resident income gap in Anhui province to do a empirical test for a measure of the relationship between them, as well as a qualitative and quantitative analysis between the consumer demand and economic growth of Anhui. The result is that there is a clear negative correlation between resident income gap and consumer demand, the other result is that consumer demand has made a greater contribution on economic growth than investment in Anhui Province. But it is still obvious that the total contribution rate on economic growth that consumption caused is declining. So the resident income gap has negative effect on economic growth in Anhui province. The reason resident income gap in Anhui province occur stem from organization and institution, etc. Therefore I give some corresponding measures according to the specific issues of Anhui province to narrow the resident income gap, for example perfecting income allocation institution, increasing agriculture finance, and impelling education-developing harmoniously. By taking these measures, Anhui economy can get stupendous growth.