Analysis Of Non-equilibrium Of Chinese Residents’ Benefit During Economic Growth

Whether and how much the achievements of economic growth is shared by low-income people has received the attention of domestic and international academia and governments. It gradually becomes one of the goals of many international organizations to enhance the balance of benefits in the process of economic growth and achieve inclusive growth. Since 1978, China’s economy has been growing fast, at the same time, the gap between the residents’income has been widening rapidly, which means that the different groups of people share the achievements of economic growth differently. Hence the following issues need to be solved urgently in China. How is the difference described exactly? How much is the difference for different people when sharing the achievements of the economic growth. How does the difference change? What is the mechanism behind it? How can we deal with the differences?This paper is based on the evaluation of social welfare. Through the reflection of the framework of pro-poor growth, a new approach based on the analysis of the total distribution of income distribution is presented. According to this approach, this paper analyzes the income growth of different groups and its decision mechanism from three levels. The first is the macro analysis. It analyzes the impact of macroeconomic policies on the income growth of different income groups, by relating the variables of income growth and macroeconomic policy variables. The second is the micro analysis. By using the unconditional quantile regression method, the paper tries to estimate and decompose the income function on the different quantile points, and to understand the decision mechanism of the income growth of different groups. The third is back to the tradition, the paper tries to understand the non- equilibrium of the residents’benefit of economic growth by analyzing poverty and its changes. The main conclusions are:First, this paper found that the change feature of non-equilibrium characteristics is more obvious in the urban residents during the economic growth. The income growth rate of different income groups shows obvious non equilibrium. Urban residents and low-income people in rural areas are increasingly dependent on the income of wage earners to share economic growth.The contribution of the income growth of the rural low-income people’s transfer income of isgradually increasing.Second, using time series analysis method,cointegration analysis and Grainger causality analysis for the time series data and macroeconomic variables of the income groups, the main results are as follows. (1) The proportion of output of the first industry and the proportion of employment are negatively related to the increase of income of urban residents. The proportion of the first industry in the GDP for the role of high-income groups is much more stronger. The proportion of first industry employment has more influence on the low income group. The development of the second and third industry makes the urban high-income residents benefit more. (2) The investment of fixed assets has the pulling effect on the income of urban low-income people, but it is not conducive to high-income people. In contrast, high income people can benefit from the use of foreign investment, low-income people’s income will not be significantly affected. (3) The effect of the opening to the income groups is obviously different. High income people benefits more easily from the adjustments of exchange rate.The development of import and export helps boost the income of low-income people.Third, Fields - G decomposition found:(1) About the expansion of the income gap for urban residents, regional differences in the annual interpretation has been a relatively high contribution. The explanation effect of education is gradually enhanced, while The overall interpretation of factors such as ownership, occupation, and industry is relatively weak. (2) The explanation factor of the expansion of the income gap of the urban residents in different periods has obvious difference.Forth, unconditional quantile regression analysis found:(1) The relative explanation degree for individual characteristics effect of urban residents performs the inverted U type with the changes of quantile piont. (2) For rural residents,it shows the relative degree of endowment effect is different with the position of the quantile. However, the degree of the different interpretation of the different quantile is not consistent in the different periods.Fifth, the analysis of poverty and its fluctuation of rural residents found:(1) The poverty alleviation effect of economic growth has obvious regional differences. The poverty reduction of economic growth is offset by the expansion of income gap in a large extent. The extreme poverty population is also increasingly difficult to benefit from the existing economic growth pattern. (2) The effect of education in different years on the poverty alleviation is different. The slowdown has dropped in the latest year. In general, the poverty alleviation effect of high school education is the strongest.The innovation of the article is as follows. First, the analysis of the whole distribution of the income distribution is an improvement to por-poor growth. Compared with other methods of analysis,using the time series method and unconditional regression method to study the problem is new, and the conclusion is new as well.The problem is limited to the characteristics of the existing household survey data, sinceit is difficult to analyze some problems.