An Empirical Study On The Distribution And Redistribution In China

In economics, long and importance of income distribution is obvious, rational distribution of income is not only related to the economic question of the vital interests of the people's, but also the political issues of the social stability and national unity. Therefore, it is a major issue that can not be avoided in the economics.Since reform and opening, with the rapid economic growth in China has attracted worldwide attention, while gap between rich and poor has reached a rare level in the world, it's the primary task in current stage of economic research that we should study the problem of income distribution and find a method to solve the income inequality in China. We choose the quantitative econometric model to apply to the actual situation of China's economy, to analyze the income gap in China and test China's income distribution and redistribution. it's not only to analyze the structure of income distribution in China, at the same time, also analyze the China's fiscal policy impacting on income distribution, and provide the evidence data of income distributon. In summary, based on the research of scholars at home and abroad and the actual situation of our country's economy, we comprehensively examine and analyze the the distribution and redistribution of income distribution on china, and try to improve the unequal distribution of income status to provide theoretical and experiences reference.The paper is divided into seven chapters, the specific structural arrangements and conclusions as follows:The first chapter is the basic concepts of income distribution, theory and measurement indicators. First, we briefly summarize the basic concepts and a common classification of income distribution. Second, we review the basic theory of income distribution from the perspective of market regulation and government regulation. Finally, we introduce the commonly used measure of income distribution indicators.The second chapter is the review of income distribution in china. This chapter sort out Research on income distribution in China. First, we reviewed the impact of the income distribution of the main factors, for exemple, human capital, labor mobility, financial development, trade and other effects on the income of the research results. Second, we review our taxation on the income distribution effects. Finally, we summarize and sort out the fiscal policy, Including government metastatic expenditure and public fiscal expenditure, impact on the income distribution,The third chapter is the structure analysis of chinese income distribution and redistribution. Based on 2007 social accounting matrix, I will analyze in this paper the structue of income distribution and redistribution nationwide by taking the multiplier analysis and the relative income distribution model. the results show, in terms of the totle effect, that Animal husbandry are the most biggest sectors that have greatly influced in the resident sectors institutions. And those sectors have more impacts on the higher-income groups than the lower-class groups. In addtion, other service industries have contributed to the increase in the gross income of the resident sectors, but have less impacts on the increase in the gross income of the lower income groups, comparing to the higer-lever income groups who have benefited comparatively from those sectors. Thus, according to this paper, the economical policies should be introduced in dealing with income gaps between the different groups instead of depending on the operation of the economical system alone.The fourth chapter is the polarization of income distribution in China.we estimate the bipolarization index of china's urban and rural residents income distribution base on the EGR index model between 1998 and 2008, and analysis the polarization characters of disposable income and factor incomes, at the same time we have compared it with other country's. The result show that the distribution of household income has become much more bipolarized than unequal for the entire sample period, so we should pay more attention to the growth of income bipolarization than income unequality because which has at the high level compared with other country's. Therefore, the government in the policy implementation aspect should also respect the revenue in fair multilateral tilt.The fifth chapter is indirect tax impact on the income distribution. Based on 2007 social accounting matrix, I will analysis in this paper the impacts on urban and rural residents'income at all levels by implementing the policy of reducing domestic indirect tax rates with the help of introducing the model of a computable general equilibrium. According to the results, with a comparatively different level, in the elements incomes and the total incomes of the urban and rural residents. Among of those who see the more increase in income are people from the lower than the middle class of the urban region and from the middle class of the rural side, in contrast, the comparatively less increase in income being at the side of the top class of the urban residents and the lowest class of the rural region, which has demonstrated the effectiveness of this policy to narrow the gaps of income at all levels. If government can take preferential measures to improve the lowest'income in rural areas, this policy will be regarded as one of the most favorable policies to deal with the income disparities.The sixth chapter is transfer income impact on the income distribution. This chapter analysis the different income impacting on the totle income of people from the point of view of domain decomposition and income sources, especially the transfer income, used The Generalized Entropy index. According to the results, transfer income does not play the redistribution function of small income gap; transfer income on the rural regional internal and towns of regional internal narrow a certain income gap of residents, but obviously expanded income gap between the urban and rural residents. In addition, towns and rural residents of its metastatic income of income gap has bigger contribution and increases year by year. So the Chinese residents' metastatic income cann't narrowing the income gap, the government should take other comprehensive measures to change the situation.The seventh chapter is public expenditure impact on income distribution. This chapter analysis the Public Finance expenditure impact on income distribution, According to 1978-2009 data. First, we analyze the trend and characts of financial expenditure; Second, we analyze of the relationship between the fiance expenditure growth rate and the Gini coefficient of income used unit root test, cointegration test, the Granger test; Finally, we analysis the relationship between urban and rural per capita public expenditure and per capita income gap used the same method. The results show that The increase of China's public finance spending with the expansion of the income gap of residents, urban and rural per capita public fiscal expenditure gap shrinks is also associated with the expansion of urban and rural residents, the income gap between urban and rural residents of public expenditure and income gap is mutual causality. China's public fiscal expenditure has not only the role of narrowing the income gap of residents, more likely to make its widening reasons.