The Research On The Relationship Between Income Gap And Economic Growth In China

The theory of income distribution is an important part of a complete theory of economics. Many economists have made lots of diligent research and have some certain positive meaning on the current social reality. Theory should be combined with practice. The economics theory of distribution must be combined with practice of Chinese distribution. And the Chinese people will firmly and unswervingly follow the path of reform and opening-up. Although the Chinese reform and opening up has made great achievements and the national economy has obtained continuous development, we should also realize the current situation that the income gap has been expanding constantly, even become worse in a certain period of time within a certain range. If not handled properly, not only to the sustainable development of the national economy, also it will bring some negative effects to reputation of the socialist system at the same time.Based on the study of the previous economists, this paper uses empirical analysis and normative analysis method and attempts at the econometric regression. Moreover, the paper describes the current situation and analyses the reasons that cause the Chinese contemporary income distribution. Then it elaborates economy mechanism and further put forward the idea to the problem.Firstly, the paper makes a general introduction and classification about the main representative theory of the western economics such as classicalism, neo-classicalism, the Keynesianism and the popular Kuznets "inverted U" theory and its dispute. Then, the article puts forward the approach of personal income, shows the moment that the income gap occurs, introduces the main theory of the income distribution, which leads to the cause of the income gap may produced in all aspects in common logic basis. Furthermore, this paper attempts to use the time sequence model on the relationship between income gap and economic growth to take an analysis in the initial regression. The conclusion is that distribution gap and economic growth income still does not have significant relationship such as the "inverted U" theory, but the relative trait includes linear positive correlation. There still exists the risk that income gap of our country at present continues to worsen. This paper argues that there is a great relevance between the government policy and the pattern of income distribution. Whether the income gap can be improved depends on the policy of the government. The article infiltrates an idea that the income gap is not terrible, even is the necessary to the economic growth. The unreasonable income gap is the focus for the government’s regulation. And to establish the fair and reasonable distribution system is the key to improve the situation of income gap for the government. Finally, this paper gives the further cogitation for the problem.From the beginning of the human society to present, the income distribution gap continues to exist with human development all the time, even in the foreseeable future. The paper, from the beginning to the end, thinks that income gap, of the moral opposition, must comply with the trend of development of human history and conforms to the fundamental interests of the overwhelming majority of the people. Our need is a fair and reasonable distribution system that there is glimmers of hope that lets the people have the opportunity and possibility to change his fate. And that’s all.Due to historical and practical reasons, in a short period, even in a considerable period, the establishment of a fair and reasonable income distribution system is still not realistic. Although the operability is not strong, this paper also put forward further ideas to improve the relationship between fairness and efficiency. The article concludes that the fairness and efficiency is difficult to pursue both, but in a certain space and time condition, we can place a particular emphasis on one aspect in different historical periods.