Research On Income Gap Of Shaanxi Province And Its Relationship With Economic Growth

Since the reform and opening-up policy, China's total economy has been growing; the life equality of the rual and urban residents'has changed significantly. The statistical data shows that, with the rapid economic growth is the growing of income gap, which has attracted scholars's attention both at home and abroad. People's concern of income gap in China's government work report in 2010 also shows the importance and the nessicity to do deep research on income gap and its relationship with economic growth.Shaanxi, as a large agricultural province, is also the core province of the strategy of the development of West China, the information of its income distribution can reflect the overall condition of Wset China. So by using its data during the year of 1978 to 2009, this thesis takes Shaanxi province as an example, firstly calculates its income gap, and then does econometrics tests on the relationship of income gap and economic growth mainly using cointegration theory and Granger-Causalty tests, at last it forcasts the altertation tendency of rural-urban income gap of Shaanxi province during"the Twelfth Five Years Plan", and makes suggestions to harmonize the relationship of income gap and economic growth.This thesis includes five chapters.The first chapter is introduction. Firstly it presents the background, purpose and the meaning of the research, and then shows the literature review on the relationship of income gap and economic growth, and finally is the research methodology and some possible innovations.The second chapter is basic theries on income gap and economic growth. It reviews definitions, the calculation index on income gap, and mutual effects of income distribution and economic growth. And at last, this thesis selects its calculation index.The third chapter is the calculation and analysis of income gap of Shaanxi. By using qualitative and quantitative analysis, it calculates the urban-rural income gap, and the income gap between different industries and regional residents. The result shows that, in general, the trend of income gap of Shaanxi has been rising since the opening-up policy, the reason includes both economic growth and the income distribution policy, besides, the degree of urban-rural income gap of Shaanxi is much deeper than that of China.The fourth chapter is the empirical study on the realationship of income gap and economic growth. The results of co-integration test, Granger-Casualty test and the impulse response analysis show that, in the short time period the rising of income gap can stimulates economic growth, while in the long run it would hinder economic growth.The ffth chapter is the forcast of the economic growth and the trend of rural-urban income gap of Shaanxi during"the Twelfth Five Years Plan". The forcast of the rural-urban income gap indicates that under the hypptheses whether the central government will make policies to boost the development of agriculture and rural economy or not, the urban-rural income gap will be expanded, but under the latter condition, it will be more serious.The sixth chapter is suggestions. There are suggestions from the view of economic development and the income distruibution policy on harmonizing their relationship.