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An Empirical Study of the Impact of Income Distribution on Economic Growth

Author: ZhouXiFu
Tutor: ZhangDongHui
School: Shandong University
Course: Western Economics
Keywords: Income distribution human capital economic growth
CLC: F124.7
Type: Master's thesis
Year: 2009
Downloads: 481
Quote: 1
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Abstract


Since reform and opening-up, our country has witnessed rapid development as well as unequal distribution of income, which is important task of the theory circle. It is essential theoretically and practically to understand the effect of income distribution and economic development, and establish a virtuous cycle between them.The thesis takes the practice in Shandong province as a target, analyses the effect of income distribution on economic development. And As a major economic province in the coastal area, Shandong has seen rapid economic development and widening distribution gap as well, which can be an even more serious problem considering the urban living condition, social security, public sanity and education. The disharmony is quite a crisis from the long run.This thesis imports human capital as an important intermediate variable, firstly clarifying the mechanism of income distribution effecting on economic development through human capital, and then testing the mechanism empirically. In the latter part, I firstly inspect a negative correlation between income distribution and human capital accumulation with a simple metrological model, and then verified the positive relationship between the human capital accumulation and economic development with the Lucas endogenous growth model. The negative effect of income distribution is finally testified, based on which some suggestions are proposed. Available data limited, the thesis sees some shortcoming and is expected to be adjusted in the further study. It is of great hope that the illustration of the effect of income distribution on economic development considering human capital would be of practical significance.

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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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