The Application Of Gini Coefficient In Income Distribution Of China

Three decades of the reform and opening up, with the diversification of the income sources,patterns and the restructuring of the pattern of interests on the reform processing, China's national economy is sustained and with a rapid development,while a general increase in the income levels of the people, income inequality has became the China's current social problem and a focus of the Government and theorists in efforts to study and solve. Researching the application and limitations of the international index-Gin coefficient and how to improve the limitations of the Gini coefficient. After reviewing the basis of the Gini coefficient and the specific analysising of the Gini coefficient, indicated that the using of the Gini Coefficient in China among many shortcomings under the development of the current economic and social and stressed that because of the exist of its many limitations, the traditional Gini coefficient can not measure the income inequality accurately, theory and practice need to be improved the Gini coefficient urgently in order to evaluate the fairness of income distribution objectively.This paper gives a brief overview of the Gini coefficient. Then, starting from the actual analysis of the applicability and limitations of the Gini coefficient in China, and then according to our current situation, add some additional criteria to improve the Gini coefficient, the main criteria including economic growth, dynamic standards and sociology standards. Finally, with the actual situation in China, the Gini coefficient need to be improved theoretically and in order to ensure the stability of our social and economic development, many measures need to be taken.