Research On The Interactive Relationship Between My Country's Income Gap And Industrial Structure Adjustment

Over the past 40 years of reform and opening up,China's economic and social development has achieved remarkable achievements.The national economy has continued to grow at a high speed,the industrial structure has been continuously optimized,and national income has been continuously improved.But at the same time,there are still some issues and contradictions that deserve attention.The report of the19 th National Congress of the Communist Party of China pointed out that "socialism with Chinese characteristics has entered a new era,and the main contradictions in our society have been transformed into contradictions between the people's growing needs for a better life and the development of inadequate imbalances." The unbalanced development means that there are still structural contradictions in China's economic society.Among them,the income gap and the adjustment of industrial structure are two major issues worthy of attention.Income distribution and industrial restructuring are two important research themes of economics.Income distribution is to study economic development from the field of distribution,and industrial structure is to study economic development from the field of production.From the perspective of income distribution,scholars have not interrupted the study of income distribution since the birth of Western economics.For China,the rapid economic growth has brought about an ever-increasing level of per capita income,but it has followed a growing income gap.At present,there are still tens of millions of people in China who are not out of poverty.There are still many people in the city who have difficulties.There are still some vulnerable groups in the society.The social contradiction caused by the income gap has become one of the key issues affecting the sustainable development of the economy and social harmony and stability.From the perspective of industrial restructuring,in the process of economic development,a country's growth in GDP is accompanied by the growth of industrial structure,which is the relationship between total and structure.It can be seen from the development history of western developed countries that after entering industrialization,structural contradictions have become the main contradiction in economic development.For China,studying the issue of industrial restructuring has more important practical significance.At present,there are still imbalances in China's industrial development.These issues will affect China's economic strength and overall national strength,which requires us to study in depth.Looking at the income gap and the adjustment of industrial structure,whether there is interaction between these two important issues,and the conduction dynamics of interaction are a direction worth studying.According to the relevant research of the existing literature,it can be inferred through logical analysis that there is an interaction between the income gap and the industrial structure.A theoretical framework has been developed to analyze the interactive relationship between incomegap and industrial structure.It can be inferred through logical analysis that there is an interaction between income gap and industrial structure.The mechanisms and transmission dynamics of the interaction between income gap and industrial structure are explored.The income gap affects the industrial structure by affecting the consumption structure,savings and investment,product innovation,human capital accumulation,and government public policies.Industrial restructuring will bring about the re-allocation of resources and the redistribution of income by influencing the ratio of capital to labor input,the flow of labor between industries,labor productivity among industries,labor structure,and input of knowledge resources.For example,changes in the income gap will lead to changes in the consumption structure of residents,changes in social savings and investment,changes in the level of accumulation of human capital,changes in government public policies,and thus changes in industrial structure.The adjustment of industrial structure will bring about changes in the ratio of capital to labor input,changes in the flow of labor between industries,changes in labor rates between industries,changes in labor structure and input of knowledge resources,and thus changes in the social income gap.This paper attempts to find out the internal relationship between income gap and industrial structure adjustment,analyze the law of industrial growth and income distribution more deeply,broaden the research horizon,and provide some policy inspiration for optimizing industrial structure and narrowing the income gap.In order to verify the above hypothesis,this paper designs indexes to measure the adjustment of industrial structure,and the indicators to measure the urban-rural income gap and industry income gap,and control variables,then establishes a regression model.After that,using the 1992-2017 provincial panel data,empirical tests were conducted at the national and regional levels.In the empirical test,descriptive statistics and correlation tests are performed on the variables,and the basic information of the variables is obtained to ensure that the correlation between the variables is within the controllable range;then,this paper conducts Granger causality test and impulse response analysis on urban-rural income gap,industry income gap and industrial structure adjustment to ensure the interaction between them.Finally,using the general method of panel data regression,obtain the main parameter estimates and analyze the parameter estimation results.Empirical results show that there is an interactive relationship between the income gap and the industrial restructuring.The widening income gap is conducive to industrial restructuring;industrial restructuring will expand the industry's income gap,but the impact on urban and rural income gaps in different regions is different.In the empirical test,this paper finds that at the regional level,there is an interaction between industrial restructuring and whether the urban-rural income gap or industrial income gap.However,the interaction between urban-rural income gap and industrial restructuring has shown the opposite test results in the eastern and central-westernregions,creating a “masking effect” at the national level.There is a significant interaction between the structural adjustments and the industrial income gap.The relevant policy recommendations are proposed.In the process of promoting the optimization and upgrading of industrial structure,we must vigorously improve the level of agricultural modernization,accelerate the development of knowledge-tech-intensive industries,promote urbanization,implement rural revitalization strategies,and promote regional coordinate development,strengthen supervision of monopoly industries,improve initial distribution and redistribution policies,and rationally regulate urban-rural income gaps and industrial income gaps.At the same time,we must strengthen education and training for laborers in different regions and industries,improve the ability of the labor force,increase the employment channels of low-income groups and rural labor,improve the mobility of labor between regions and industries,and reduce the structural unemployment of the labor force to achieve simultaneous optimization of industrial structure and labor structure.The main contributions of this paper can be summarized into the following four aspects:First,starting from the reality of one-way research on income gap and industrial structure adjustment,this paper constructs an analytic framework for the interaction between income gap and industrial structure adjustment,and based on this,the full text is studied.Second,the research in this paper finds that at the national level,the widening income gap is conducive to industrial restructuring;in the eastern region,the income gap is widened,which is not conducive to industrial restructuring;in the western region,the income gap is widened,which is conducive to industrial restructuring.This is the deepening and refinement of the problem of the industrial structure that affects the income gap in the past.Third,the research in this paper also found that at the national level,the industrial restructuring brought about by the development of the tertiary industry and high-tech industries will expand the industrial income gap,but the impact on the urban-rural income gap in different regions will be different.In the eastern region,the adjustment of industrial structure will further expand the income gap,and it will not only expand the income gap between urban and rural areas,but also expand the income gap between the industries.In the central and western regions,industrial restructuring will narrow the income gap between urban and rural areas,but will further widen the income gap between the industries.This is the deepening and refinement of the problem of the income gap that affects the industrial structure in the past.Fourth,based on the previous conclusions,this paper proposes more targeted policy recommendations.For example,in terms of urbanization,the eastern region should focus on improving the scale and quality of the tertiary industry.The westernregion should focus on developing infrastructure and upgrading the scale and quality of the secondary industry.This provides a more specific policy basis for China to optimize the corresponding urbanization policy.