Fujian Industry Income Gap Studies

Since the Reform and opening up to the outside world 30 years ago, in the situation of the reform and open policy and a series of preferential policies of the central governments, the economy of Fujian Province has been increasing year by year,economic construction and social had made great achievements, economic growth has been keeping a high rate of development,comprehensive strength of the province is increased greatly,the people's life has become increasingly improved, and the Economic Zone on the West Coast of the Taiwan Strait has made solid progress. However, in the process of economic growth,there are still many problems. Development of market economy,relationships between the income distribution and social interests are more and more complex, the income gap between different groups and different industries has shown a growing trend, this situation led to poor economic cycle, the intensified class conflict, the chief friction, employment problems and many other issues that highlighted the sustained economic growth of Fujian Province will create the obstructions. Therefore, it is necessary for Fujian Province to understand the formation of industry that causes the widening income gap, the specific performance, the influence factors and the relationships between economic growth,and pertinently alleviate the income gap between the industry measures.Firstly,this article started with the status quo of the income gap of Fujian industry, according to the Fujian statistical yearbook and other statistical data,through calculating industry wage range, Coefficient of Variation and the Theil index and other indicators, we validate and forecast the income gap trend of Fujian's industry.Secondly, using the stepwise regression in multivariate statistical analysis we screen the factors influencing the Fujian industry income gap, for example, human capital level, industry labor productivity and the industry's monopoly degree and etc. Then we use Zou Testing to analyze influence factors of the monopoly industries and the non-monopoly industries. In the monopoly industry the main factors determining income is monopoly degree, while in the non-monopoly industry more major is in the human capital level. Using Granger causality test, Co-integration test and error correction model, we empirically analyze the relationships between the industry income gap of Fujian province and economic growth. Results show that there is a long-term equilibrium relationship between industry income gap and economic growth. The economic growth Granger causes the income gaps between industries,in the short term economic growth of the industry has no significant influence on income gap,but in the long term the relationships between industry income gap and economic growth are significantly positive. The influence of industry income disparity on economic growth is staged,and the industry income gap does not Granger cause the economic growth. The present stage of the income gap in Fujian province has obstacle function on the economic growth in the long run.Finally, we pertinently put forward some measures to ease the income gap of Fujian industry,and provide scientific references for provincial government and relevant departments.