Study On Implementary Difficulties And Realizing Path Of Double Per Capita Income For Urban And Rural Residents

Currentry,China is in the critical stage of overall deepen reform.The pattern of interests are facing major adjustment and the argument of "the Private Economy out and the State Economy in" can be heard anywhere.Also,the adjustment of economic structure and the change of economy development mode are imperative.18th CPC proposed "we should double our 2010 GDP and per capita income for both urban and rural residents by 2020".Third Plenary Session of the 18th CPC forward"we should protect income earned through work,and we must increase individual income in step with economic development and work remuneration in step with improvement in labor productivity, and we should raise the share of individual income in the distribution of national income and increase the share of work remuneration in primary distribution".Let income of residents coordinate with the economic growth have become one of difficulties of Chinese reform.Therefore,double per capita income for urban and rural residents have become the focus of the community since it was forward.In this context,the paper select double per capita income as the theme to study the implementary difficulties and realizing path by using the theory and empirical methods.The paper study the difficulties of double per capita income from two aspects.On the one hand,the reform of Chinese factor market are comparatively slow.Investment-led growth and export-led growth which are shaped by factor price distortion create the miracle of Chinese growth.But factor price distortion cause the internal and external imbalance of economic structure,cause income distribution which bias capital,enterprise and government, and cause difficulties of income of residents growth.This paper also select the C-D production function to study the severity of factor price distortion.On the other hand,the unfair distribution of income are one of the difficulties which hinder the realization of double per capita income.The unfair distribution of income can usually be divided into origin unfair,process unfair,result unfair and generation unfair.China has serious unfair in four aspects especially distribution of income present income polarization trend.The unfair distribution of income are harmful to the realization of double per capita income from four ways.Firstly,unfair distribution of income have unfavourable influence to human capital investment;secondly,the reform of income distribution must break the existing pattern of interests;thirdly,the reform of income distribution must carry from all fields;fourthly,the reform of income distribution must grasp the relationship between fairness and efficiency.Double per capita income are a result of growth primarily, fast economic growth bring income growth,and there are not income growth without economic growth.But the investment-led and export-led growth are unsustainable. So we should achieve wage-led growth through correcting factor price distortion.Wage-led growth are based on the growth theory of Post Keynesian,and they advocate virtuous circle of economic system by increasing the wage of labours.Based on economic growth,we should focus on the deepening reform of income distribution from the initial distribution and redistribution to solve the problem of unfair income distribution.Relying on reform to promote development and benefit more people.