The Research Of The Affect On Primary Income Distribution From Local Government Behavior

Along with our country economic growth primarily championship achievement appraisal system,local government officials to individual promotion of political interests and economic interests have choice to develop the district economy,especially to boost GDP,and try to get more resources to economic development.After the tax reform in 1994,the interests of the local government has become a relatively independent subject.However,within the jurisdiction of a given resource is limited,the local government in order to expand its interests will strive for more factors of production.Represented by state-owned enterprise restructuring,non-public economy marketization reform improved the mobility of production factors,factors of production to local governments struggle with the feasibility of operating level.Because the local government has control over the land,for the sake of investment promotion and capital introduction,local governments often take to increase land supply,low prices to attract investors;In addition,local governments will also by providing various forms of subsidies to attract investors.By this way,the local government to attract more capital into the jurisdiction,achieve the goal of economic growth and expand fiscal revenue,so as to help position promotion.However,the way of economic growth itself has the problems,especially to the distribution of income has caused negative influence that can't be ignored.First of all,the local government at a lower price to attract capital,reduce the cost of enterprise,return on capital.On the basis of the price of labor,labor income share is reduced,the income share capital increase.At the same time because the capital-intensive industries usually has a long industrial chain,pull function on the regional economy is more obvious,the local government also more inclined to give preferential,capital-intensive industry and capital-intensive enterprises grow faster,and lead to boost capital income share.In addition,the bargaining power of Labor is different,more conducive to the income distribution.This article through Acemoglu inspection method on the transmission mechanism,the results show that by controlling the land to influence the technology of local government,ultimately affect the labor income share.Vigorously investment promotion of economic development,however,times have changed,and the problem of income inequality cannot be ignored.This is based on local government competition in China special economic growth way distorted by income distribution.By the development-oriented government transformation to a service-oriented government,therefore,very urgent,government reform of the existing official incentive mechanism,and adjust measures to local conditions to develop economy,to realize the economic healthy development.