Research On The Influence Of Income Distribution On Effective Supply Capability

From the 1980s to the beginning of this century,China's economy has maintained a GDP growth rate of around 10%for many years,creating brilliant achievements in human social and economic development in modern times.However,China is currently facing the slowdown of economic growth.At the end of 2012,the party's report of the 18th National Congress of the Communist Party of China proposed that China should "promote the strategic adjustment of the economic structure" and "focus on solving major structural problems that constrain the sustained and healthy development of the economy".China's series of demand management policies are stretched,and the academic circles and the government recognize the importance of coordinated development of supply and demand for the development of the national economy.This paper argues that the shortage of demand and the imbalance between supply and demand should be discussed under the framework of supply and demand linkage.Supply and demand are two inseparable and mutually supportive ends of economic development.In the contradiction between effective supply and effective demand,effective supply It is the main contradiction.The problem of insufficient long-term demand in China is closely related to the lack of effective supply capacity.Further analysis found that the problem of insufficient domestic effective supply capacity is closely related to the problems in China's income distribution.Effective supply capacity is the ability to best meet consumer demand under existing resource constraints and is difficult to observe directly.There are few studies on effective supply capacity in the existing literature.Therefore,this paper attempts to measure the effective supply capacity,and uses the Chennai standard to construct a reasonable investment and consumption structure as a reference in the existing GDP growth rate,and then use the Solow residual method to measure the effective supply capacity.Then this paper combs the theory and literature related to income distribution and effective supply capacity.On this basis,it discusses the theoretical mechanism of income distribution affecting the effective supply capacity.This paper argues that income distribution has a direct impact on the effective supply capacity through the incentive effect;on the other hand,by influencing the distribution of purchasing power,stimulating consumer demand indirectly affects the effective supply capacity.Then the theoretical mechanism of this paper is verified by using domestic and foreign data.Empirical studies using domestic data show that in terms of direct effects,increasing the proportion of labor income and improving the "rationality" of income distribution among workers can promote the effective supply capacity;in terms of indirect effects,Increasing the proportion of laborers' income can increase consumer demand and thus have a positive effect on the improvement of effective supply capacity.Empirical studies using international data have also shown that increasing the proportion of labor income can directly increase the effective supply capacity.Finally,this paper proposes policy recommendations to improve China's income distribution system and improve the social security system to increase residents'income and expand consumer demand.