Nonparametric Empirical Research On Chinese Economic Growth And Inequality Of Income Distribution

The relationship between economic growth and income distribution has been the hot issues discussed by the economic scholars all the time. At present, China’s economic is growing speedily, but the gap of income distribution appears so expansive trend that it directly or indirectly affects the development of society and economy. This paper attempts to study the relationship of China’s economic growth and income distribution by theoretical and empirical perspectives, the study is of importance in theories and practices.Firstly this paper combs the domestic and international economists’research about economic growth and income distribution. Most of them use the traditional model to measure that Kuznets’ inverted U-shaped curve has no inflection point or has only one inflection point however, to our country who is in from agricultural economy to industrial economy, and at the same time is in the special process that there is the big change of the economic structure of selectively development of the knowledge economy and information economy, inequality curve of income distribution could have two or more inflexion points.On the research part, this paper mainly use of the non-parametric local polynomial estimation to forecast the Gini coefficient in2008and2009, and measure the economic growth and inequality of income distribution for the inverted U-shaped curve of the short-term and long-term trend. This paper also use the non-parametric spline method to measure the economic growth and inequality of income distribution for the inverted U-shaped curve of the short-term trend.This provides new analysis ideas Oand methods for the study of the economic growth and inequality of income distribution for the inverted U-shaped curve. The empirical result shows that there are two or more inflexion points up to now. Although the Kuznets’ inverted U-shaped curve cannot explain the local change tendency, the economic growth and inequality of income distribution present the inverted U-shaped curve long-term development tendency. Currently, the curve is in the left part of the inverted U-shaped in China. The two methods all prove that the inequality of income distribution from2009begins accelerating to rise as China’s economic growth.