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The Research of Middle-income Trap Based on Income Distribution’s Perspective

Author: ChenXiuLi
Tutor: ZhangYuYing
School: Huazhong University of Science and Technology
Course: Western Economics
Keywords: Middle-income trap income distribution economic growth Gini coefficient
CLC: F124.7
Type: Master's thesis
Year: 2012
Downloads: 19
Quote: 0
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Abstract


China’s economic and social development is indicated into a new level when Chinafirstly stepped into the upper middle-income countries from the lower ones in2010. Muchmore new challenges and difficulties will be encountered for china according to theinternational experience. If the problems are handled properly, china can be into thehigh-income economies smoothly; if not, the economy will likely to be trapped in"middle-income trap". This is so important a period with chance and challenge that theanalysis and reasonable precautions of "middle-income trap" are with importantsignificance.The gini coefficient of different districts is calculated in this paper. Whether Chinahas already caught into the middle-income trap and whether the gini coefficient’s criticalzone exists is measured by the comparative analysis to international experience. Resultswere concluded. The impact on economic growth made by the income distribution isrelated to the size of income distribution’s gap and the economic development level.Thesituation of china’s income distribution has not hindered the economy growth and Chinahas not yet been trapped the middle-income trap. However, the obstructive effect will beshow up when China’s economic development reaches a certain level. So, To perfect thesystem of China’s income distribution is before everything.

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