Social And Economic Impact Evaluation On The Income Gap Of Residents In China

Thirty years of reform and opening to the characteristics of the construction of China’s socialist cause has made remarkable achievements, rapid economic development has long been making great efforts to enhance China’s comprehensive national strength, while the standard of living has also been significantly improved. However, a series of questions behind by the rapid growth of the economy brought about by the income gap has become China’s economic and social prosperity and continued stable development of resistance. In view of this, firstly, the historical evolution of the income gap between residents of the process, the status and related concepts were introduced, and then constructed based on the theory of income distribution income distribution of economic and social effects of the transmission mechanism. On the basis of theoretical and empirical part based on the status quo, to1995-2012, China’s first provincial-level panel data for the object, using feasible generalized least squares method were investigated long-term equilibrium relationship of the income gap between eastern Midwest residents and economic growth. Then investigate crime as the main target through the establishment of a time series cointegration equation Income Gap in China since the reform and opening up social stability impact on the empirical analysis, and the use of Granger causality method to verify the income gap between the social stability. Finally, projection pursuit cluster analysis, feasible generalized least squares method was used for the income gap between residents of eastern Midwest social effects of unemployment, social security; housing, education and health in five areas were investigated. Results of the current Income Gap in China as a whole is not conducive to economic growth and social stability.The study also found that the early21st century, China’s overall economic growth with the expansion of the income gap started to slow down and hinder the effect on economic growth as the Gini coefficient rising more significant. In addition, the income gap between the economic growths of China’s relations with the residents also showed some regional characteristics. Eastern region due to the concentration of policy, capital, talent, resources and other economic advantages in the development of early can tolerate a certain degree of income inequality, with the rise to economic growth in the late Gini coefficient began to accelerate diminishing; central region between the two have the same impact but the trend of economic development on a more limited tolerance for income inequality than the east; while the western region of the Gini coefficient increased the most sensitive. a little unreasonable income distribution will seriously hinder the growth of the local economy. Based on these characteristics, this paper presents the income gap between residents in the eastern region a valid range for economic growth, that is, when the eastern region in a certain range of the Gini coefficient of income distribution on the negative effects of fluctuations in economic growth is minimal. Impact on the social effects of income inequality also found:economic growth and social stability is the relationship of mutual influence; urbanization and labor mobility will lead to social instability; while recent real estate projects and large-scale urbanization of farmland also imposed is not conducive to social harmony and stability.