Economic Analysis Of Income Distribution And Economic Growth In China

Income distribution and economic growth has been one of the classical problems in economics.Since the reform and opening up,with the establishment and promotion of China's economic system reform,China's economy has experienced a great leap forward development,while the income distribution mechanism has been greatly changed.In the early stage of economic development,economic growth has accumulated material foundation for the society,and the income of residents has been greatly improved.The problem of inequality in income distribution has become more serious.As the structure of income distribution fairness,reasonable or not,related to the production efficiency,institutional change,the social harmony and stability,has a great influence on the sustainable growth of the economy.At present,China's economy is now entering the "new normal" stage,and in 2010 the per capita income has reached $4300 which means China has entered the middle-income stage,facing great pressure of the economic downturn,the economic growth rate changes from high speed growth to medium and high speed growth,the original growth pattern has not continued to promote economic growth and social contradictions,especially the income gap too large,seriously restrict the further development of China's economy.Although the last century,Latin America has experienced 30 years of rapid economic growth,because of the gap between the rich and the poor,social contradictions,since then the economy has been stagnant and fallen into a "middle income trap." This is a wake-up call for the long-term development of China's economy.This paper collects and analyzes the related literature of home and abroad,to analyze the relationship between income distribution and economic growth theory,combined with the current situation of income distribution and economic growth in China.It is considered that the relationship between income distribution and economic growth is the dynamic relationship between mutual influence and mutual decision.Different stages of economic development are different.The effect of different impact of economic growth on income the distribution,the existence of Kuznets inverted”U”type,many domestic scholars have conducted theoretical and empirical research on it,so this paper will focus on the influence of income distribution on economic growth.By calculating the latest provincial Gini coefficient,the empirical model confirmed that income distribution is inverted "U" type impact on economic growth,indicating that there is a reasonable income distribution gap can make the economy sustainable growth,China should construct the "income distribution olive" structure,expand the middle income groups,and put forward reasonable suggestions.The narrowing of the income distribution gap is conducive to enhancing social stability and cohesion,which is conducive to promoting sustained economic growth and economic development.This paper mainly includes the following seven chapters.The first chapter is the introduction.It puts forward the research background and significance of this topic,expounds the research ideas and methods,as well as the innovation and shortcomings of this article.The second chapter is literature review.It mainly combed the literature of income distribution theory,summarized the research status of the relationship between income distribution and economic growth at home and abroad,and put forward the point of view of this article.The third chapter is the theoretical basis of income distribution and economic growth,mainly introduces the theoretical research on income distribution and economic growth in modern mainstream economics,including the theories of Kuznets,Robinson and Caldor.The fourth chapter analyzes the current situation and causes of income distribution and economic growth in our country.It analyzes the current situation and reasons of income distribution gap in China,and analyzes the reasons of economic growth and the slowdown of economic growth.The fifth chapter analyzes the relationship between income distribution and economic growth in China.This paper argues that economic growth and income distribution is not a simple one-way function,but there is a two-way causal relationship,and the impact of income distribution on economic growth is analyzed in stages,the impact of income distribution on economic growth is inverted "U" type;expounds the conduction mechanism of income effect of distribution of economic growth.The sixth chapter is empirical research on the impact of economic growth of China's income distribution.The empirical study using provincial panel data,the actual per capita GDP measure of economic growth,a measure of income distribution gap Gini coefficient,the introduction of human capital,technological progress as the control variable,include panel VAR and through a series of test to analyze the impact of income disparity on economic growth.The seventh chapter is research conclusions and policy recommendations.Through the above chapters of theoretical and empirical analysisgives relevant policy recommendations to promote China's early entry into high-income countries.