The Study On Regional Income Gap In Guangdong Province And Its Impact On Economic Growth

The problem of income gap has been the hot topic for discussion in economic circles. There are many documents about the income gap, such as the status of income gap, measurement methods of income gap, factors of income gap, and the relationships between income gap and economic growth. According to different objects of study, the studies can be divided into the following categories: studies on the comparison of urban and rural incomes, studies on the gap of rural or urban income, studies on China's Regional income disparity.Referred to some existed theory, this article analyzed the regional income disparities within the area of Guangdong Province. In this paper, it used Absolute poor, Gini Coefficient, Theil Index to measure the total area of Guangdong Province income gap, income gap between urban residents and income gap between rural residents. It found that Guangdong's Regional income disparities is widening. According to the decomposition of urban and rural income, it found that property income made small contribution to income. The gap of property income between regions is large. In addition, the paper tried to demonstrate the relationships between income gap and economic growth. Through the establishment of simultaneous equation model, it found that Guangdong's regional income disparity has not been a negative impact on the economy. But income gap has a negative impact on social stability and harmony. So, it is necessary to pre-emptive measures to control the income gap and avoid a further widening of income gaps. Finally, according to the full text, the paper put award some suggestions about controlling income gap.