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The Primary Distribution of National Income and Resident Consumption

Author: LvQiang
Tutor: LiuChangGeng
School: Xiangtan University
Course: Political Economics
Keywords: The ratio of consumption Labor income share State-owned enterprises United Assets and Equity
CLC: F124.7
Type: Master's thesis
Year: 2010
Downloads: 181
Quote: 0
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Abstract


Consumer demand is an important condition to protect a country's steady and rapid economic growth , the growth mode of the mode of economic growth of consumer -fueled economy is healthy . Since the reform and opening up , China's economy has maintained 30 years of rapid growth , however, the development of the national economy is more dependent on investment and exports driven domestic consumption , especially household consumption , long period in the doldrums . The structural imbalances in the national economy , not only is not conducive to long-term sustainable development of the economy , but also most likely caused by macroeconomic fluctuations . The consumer direct the decisive factor is the disposable income of the residents , in the role of the law of diminishing marginal propensity to consume , the initial the unreasonable distribution structure inhibits the integrity of the social consumer demand . Although the income distribution analysis paradigm has been recognized by scholars as the ratio of consumption to decline , but the analysis of the initial distribution of income on household consumption is relatively small . The author believes that to fundamentally solve the problem of insufficient consumer demand in China must proceed from the national income, the initial distribution . Verified the KKR assuming the effectiveness of China that is insufficient to explain the decline in the rate of consumer savings rate changes , lack of consumer demand was mainly due to the low share of labor remuneration in primary distribution caused ; increased capital income is labor income the main reason of the decrease in the proportion of the government to improve intervention in the economy is also to some extent reduce the proportion of the labor remuneration in primary distribution ; the high profits of state-owned enterprises is an important source of capital income increase ; adjust existing property rights of state-owned enterprises institutional arrangements can contribute to the improvement of labor productivity in the enterprise , micro-foundation for the initial distribution of a fair and efficient implementations .

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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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