The Relationship Between Economic Growth And Income Distribution

Based on supply (production capacity increase) and demand perspectives, this paper combines actual state of Xinjiang economic development since 2000, and discusses the relationship between income distribution and economic growth.First, from the perspective of capital flows in Xinjiang (production capability increase), it discusses the impact of income distribution on economic growth. A main logic is formed: income distributionâ†'capital flowsâ†'economic growth. In this section, by traditional theory the article makes an analysis that Xinjiang economy shows an extensive type economic growth due to capital drive, which is a result of capital flow due to income distribution gap. Then it analyses the impact of income distribution on Xinjiang economic growth during this period. At last it discusses the reverse effect of Xinjiang extensive economic growth on income distribution, such as the widening income gap between urban and rural areas, the mismatch between income growth and economic growth, the severe employment situation and other issues.Second, from the perspective of Xinjiang demand, it discuses the impact of income distribution on economic growth. A main logic is formed: income distributionâ†'on consumptionâ†'economic growth. This section, mainly guided by on current revolved theories, analyses the impact of income distribution gap on consumption, then the impact of consumption on economic growth in Xinjiang. Further clarify the relationship between income distribution and economic growth as a whole.Third, from the endogenous variables of economic growth - human resources perspective。On the one hand, it discusses amplification phenomenon of human capital on income distribution based on Xinjiang reality. On the other hand, Compares it with national average level and argues about the reasons why Xinjiang extensive economy grows slowly under the same investment conditions. The impact of income distribution on Xinjiang economic growth through human resources is displayed.