Research On The Impact On The Mode Of Economic Growth To Income Hap In China

The residents'income gap growth in China has been a serious problem that restricts China's economic development. The domestic and abroad scholars make detailed study on the residents'income gap growth in China from the government's policy, the market factors, human capital, gray income and various angles. And many different views and suggestions on how to narrow the income gap are given by those scholars. However, there is not an identical opinion about the mechanism and origin of the income gap in academic circles. This thesis will make an attempt at studying China's income gap from the mode of economic growth, and put forward the influence mechanism of the mode of economic growth on the income gap.Through the longitudinal survey between the mode of economic growth of China and income gap, and with the international comparison of the income gap, the writer finds that the mode of economic growth is definitely concerned with income gap. The extensive economic growth mode is often associated with the higher income inequality, and the intensive economic growth mode is often related to the lower income inequality. Besides, the income gap is widening both under the extensive economic growth mode and under the intensive economic growth mode.After the theoretical analysis of the phenomenon above, this thesis maintains that the mode of economic growth acts on the income gap with these mechanisms as followings. The requirement of the factors of production will be influenced by the mode of economic growth, so that it makes the price of the different factors of production change. And then the change of the price will cause the corresponding changes of the income level of the different owners of those production factors. At last, it brings about the widening income gap. The extensive economic growth mode promotes the widening income gap by its influence to the price, flow and externality of the production factors. However, the intensive economic growth mode impacts the technology in order to make the demands of workers with different human capital stock change. Then the workers'wage level will be differentiated. Consequently, the income gap will be widening. In addition, there isn't an gulf between the capital owner and the labor under the intensive economic growth mode, and the income gap under this kind of mechanism has stronger acquired control ability, so the income gap under the intensive economic growth mode is smaller than that under the extensive economic growth mode.Then, this paper analyzes the detailed mechanism of the widening income gap in China with the application of the mechanism above. The main reasons of the continuously widening income gap are unbalanced distribution of the factors of production among the different urban and rural, areas, and industries, between the capital owners and labors that makes the unbalanced distribution. Therefore, the income gap become widening. With the survey, it also proves that capital investment, as the main representative of the investigated factor, varies 10 billion Yuan each time, then the Gini Coefficient will be changed by 0.1457 points of percentage.