The Policy Effect Analysis On The Income Gap Of Yunnan People Imposed By The Completion Of CHINA-ASEAN Free Trade Area

This thesis studies and analyzes the impact on income gap of Yunnan people imposed by the completion of China-ASEAN Free Trade Area with the application of Difference-In-Differences model (DID Model) based on425Panel Data of Yunnan and Guizhou Province from1996to2012. The study indicates that the completion of China-ASEAN Free Trade Area has positive influence on narrowing income gap of Yunnan people to some degree while the openness of Yunnan Province has various influence on people with different income in different areas.As a whole, income inequality of Yunnan people presents a "w" shape line in the past17years. Inrecent years, the income gap tends to be gradually narrowed. However, this tendency is varied in different income group in different areas.The study indicates that Yunnan Province should conduct reform on the following aspects such as household registration system, openness to the outside, investment in infrastructure as well as allocation of educational resources in order to alleviate people’s income inequality in line with the real situation of Yunan Province.From the macroscopic view, the government should rationally distribute resources so that people with different income in both urban and rural areas can have equal access to the market. During the performance of market, the government should strictly comply with relevant laws and regulations to ensure that all economic entities can compete fairly. From the view of financial revenue and expenditure, the government should make the most of the function of taxation policy and secondary distribution policy to narrow income gap of Yunnan people.