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The Impact of Income Gap in China on Economic Growth

Author: ZhaoWenZuo
Tutor: ZhangLianCheng
School: Capital University of Economics
Course: Western Economics
Keywords: Income distribution Economic growth Human Capital Physical capital
CLC: F124
Type: Master's thesis
Year: 2010
Downloads: 384
Quote: 0
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Abstract


In recent years, as China's rapid economic growth , the residents income distribution gap continues to expand by the concern of the whole society . The income gap in China to expand the one hand, the performance can not be guaranteed in the survival and development of a large number of low-income , on the other hand , the expansion of the income gap also affect long-term growth of the Chinese economy . Therefore, it is of practical significance to explore the impact of the income gap in China for long-term economic growth . This paper analyzes the gap in income distribution on the accumulation of human capital and physical capital accumulation . The effects of income distribution gap between human capital accumulation , the article analyzed Widening income gap in China showed a positive correlation with the accumulation of human capital , is the impact of these factors to cover up the fact that the widening income gap of human capital accumulation negative impact that the widening income gap is not conducive to the accumulation of human capital . In this paper, the analysis of the income distribution gap affect the mechanism of accumulation of physical capital based on empirical research gap in income distribution on the accumulation of physical capital , show that the widening income gap is conducive to the accumulation of physical capital . However, with the continuous development of China's economy , the accumulation of human capital will play an increasingly important role in China's future economic growth , narrow the income gap , in this sense , promote human capital accumulation and long - term economic growth in China has an important significance. Finally, the paper has put forward a number of policy recommendations to narrow the income gap .

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CLC: > Economic > The world economic profiles,economic history,economic geography > China's economy > Economic construction and development
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