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A Study On Regional Income Inequality And Its Influence On Economy Growth

Posted on:2007-07-15Degree:DoctorType:Dissertation
Country:ChinaCandidate:H L WangFull Text:PDF
GTID:1119360215962825Subject:Agricultural Economics and Management
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The important character of income distribution was equalitarian in China before 1978, even it was called high equalitarian. The Gini coefficient was lower than the majority of the developing countries at the beginning of reform. After 1978, economic reform bring energy, for example, the income and life quality of people was improved distinctly. With stepwise deep-going way of economic system reform such as the initiation of rural reform oriented by efficiency as first since early stage of 1980s and city reform since middle stage of 1980s, economy began to transform and regulating effect of market mechanism has been reinforced., the income inequality of China also began to evolve with the economic system reform, and it presented different character. We can analyses the income inequality from several dimensions: the first dimension is the income distribution of the whole residents in China, whose Gini coefficient has gone up from 0.32 in 1980 to 0.45 in 2001. The second dimension is the income distribution of city residents, it has gone up from 0.16 in 1978 to 0.32 in 2002. The third is the income distribution of rural residents, which has ascended from 0.22 in 1978 to 0.36 in 2002. The fourth is city-rural income inequality, the city-rural income ratio was 2.6∶1 in 1978, however, it has gone up to 3.1∶1 in 2002. Several dimensions present that the income inequality has obviously enlarged, Income distribution is translating from equality to critical inequality in China. The Gini coefficient of China list 85th in 120 countries and areas from the development report of world bank in 2005. Some researchers argue that the income inequality of Chinese resident is almost close to the extent which will induce social polarization and stagnant economic growth. Under the above background, the thesis analyses income inequality of regional residents and its influence on economic growth. The following are the contents and basic conclusions:Firstly, the paper use Gini coefficient to calculate the regional income inequality of city resident, and decompose Gini coefficient to population factor and economic factor. Meanwhile Gini coefficient is decomposed according to different province. The paper uses sigma-index and economic convergence method to test the convergence of city resident income. On the basis of the above analysis, the paper use square error method to analyzes the source of income inequality. Conclusions as follow: the income inequality of city resident has enlarged since 1978; the economic factor accelerates rising of income inequality and the population factor reduce income inequality. The enlargement of income inequality is induced by Jiangsu, Zhejiang, Shandong, Hunan, Guangdong and Sichuan province. The income inequality between regions account for 50% of the whole income inequality and is enlarging. Income inequality between regions is more larger than that within a region. Though sigma-convergence doesn't exist in China wholly, it exists in region inside. City resident income exist absolute beta-convergence. The resource of city resident income inequlity is physical capital and TFP.Secondly, the paper uses Gini coefficient to decompose income inequality, and definitude the structural reason. We use Theil index to decompose income inequality of rural resident. The paper uses the convergence method to analyze farmer income convergence, and use the squre error decompose to calculate the resource of income inequality. Conclusions as follow: Income inequality in rural enlarge obviously. The decomposion of Gini coefficient change shows that regional income inequality in rural mostly come from income structure effect. The decomposion of Theil-index shows that income inequality between regions is the most share. The sigma-convergene doesn't exist in farmer income of whole China, However, exist in east and middle farmer income. The beta-convergence rate is between 15% and 18%. The resource of income inequality of farmer is physical capital and TFP.Thirdly, The sector argues that the decomposition order of Theil index will affect our judgment of income inequality, that is, if city-rural decomposition is calculated before regional decomposition, the city-rural inequality will be enlarged, and if regional decomposition is calculated before city-rural decomposition, the regional income inequality will be enlarged. Given the reasons mentioned above, both of the decomposition ways are adopted in the paper, and regional income inequality and city-rural inequality are purified, thus the more important reason of income inequality comes out in a static way. Furthermore, the paper uses and expands the research method concluded by Mookherjee and Shorrocks to analyze the changes of income inequality comparative-statically in order to review the impact of the factors which influence income inequality such as the changes of regional income inequality, the changes of city-rural income inequality, the mobility of population, etc. It indicates in the research that: city-rural income inequality is more serious than regional income inequality and changes step with the total income changes, thus playing a ruling role in the four stages of total income changes; regional income inequality is lighter than city-rural one, but take a one-way increase basically with an obvious accumulative effect; whereas population mobility between city and rural areas enlarges the inequality of incomes, population mobility among regions narrows this inequality.Fourthly, the sector uses time-depend and transition matrix to calculate resident income mobility. Meanwhile, the sector conforms new income mobility index. We also calculate income related coefficient between years. Conclusion as follow: Time-dependence of resident income is increasing. The income mobility mostly comes from rural resident before 2000, and from city resident after 2000. The interval year is larger, the income mobility is increasing. Income inequality go through about 20 years to permanent income inequality, for example, Gini coefficient is about 0.26, Theil index, variance coefficient and extremum ratio will be 0.10, 0.45 and 5.5.Fifth,the paper uses simultaneous equations method to analyze influence of income inequality on economic growth through physical capital, human capital and resident consumption. Conclusions as follow: From long term, income inequality prefers physical capital growth, however, it go against human Capital growth and baffle economic growth through education-bearing mechanism. Income inequality go against resident consumption growth and baffle economic growth. The three mechanism compositional forces is that income inequality favor economic growth in the five beginning years and go against economic growth subsequently.
Keywords/Search Tags:income inequality, income mobility, city-rural, regional
PDF Full Text Request
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