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Exposition of the Income Distribution Effects of Public Ownership

Author: ZhangWen
Tutor: MaChunWen
School: Jilin University
Course: Western Economics
Keywords: property owners of virtual spaces income distribution effects rights and interests of state-owned assets
CLC: F121
Type: Master's thesis
Year: 2010
Downloads: 108
Quote: 0
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Abstract

The international financial crisis had brought China’s sharp drop in external demand, led to the slow economic growth, this deeply exposed the structural crisis of our country’s development model.So, the personal income growth falters and the people’s poor government’s rich caused by distortions in China’s national income distribution mechanism ,the resulting weak domestic demand, became an academic focus of attention.Traditional chinese academic research on income distribution, mainly on the relationship between market economy and the income gap, as well as the inequitable second distribution of national income, etc. They did not study China’s fundamental property rights structure, therefore, failed to identify any distortions in income distribution mechanism for the real reason,so, they put forward policies yield good results.This paper studies the distribution of national income through property rights, trying to prove that the property rights model of public ownership is the main cause of distortions in China’s income distribution mechanism.This paper has made the analysis and description on income distribution effects to find a solution key to provid ideas in the end. In this paper, the author first introduced the core of the theory for the study of the paper, and then through the study of China’s system of public ownership, pointed out the characteristics of public ownership of property rights and their inherent dilemma caused the distortions in China’s income distribution.Then, of state-owned enterprises for an example, this paper analyzed and described the effects of China’s public ownership of the national income distribution to show that public ownership system is a reason of income distribution distortion and weak domestic demand.Specifically, this article followed the following logic.First, in the introduction, the author described the importance of choice of this topic. Income distribution distortion reducing domestic demand is the crux of transformation of China’s economic growth model, therefore, it’s very necessary to in-depth analysis the status of China’s income distribution distortion, find the cause of this phenomenon in order to provid some suggestions for China’s income distribution reform.The introduction also summarized the domestic and foreign scholars articles on property rights and income distribution and other important research results.Then, in the first chapter, the author discussed the modern property rights theory and the theory of income distribution, pionted out that modern property rights theory was developed from the new classical economics. And then the author outlined the core concepts of modern property rights economics, clarified what was the real property rights, the basic elements of a complete property rights, and property rights arrangements’significance on the income distribution. This chapter provided a property right to the following analysis , and had laid a theoretical basis.In the second chapter, the author did an in-depth analysis on public property, after introducing Marxist economics’logic of the public ownership, this article pointed the unrealistic of the premise of the of public ownership, then analyzed the characteristics of public ownership and the inherent conflicts.Below the public ownership system, the real owners,all citizens, can’t exercise any property rights, can’t achieve real income from common property , so it is a virtual public ownership, it’s by the state as an agent to split for partition management. This has resulted that public property system was difficult to cross barriers and the plight of the income distribution. Also, under the conditions of a market economy, the public ownership and market rules are likely to form the conflicts. In the final chapter, the author described the reform of the public ownership which was the mainstay of China’s the property rights system , as well as the status of the system of property rights.They were for the following introductory remarks. In the third chapter, this paper carried out the analysis and discussion about China’s income distribution effects of public ownership under the conditions of the market economy, in order to facilitate the discussion, this article focused on state-owned enterprises as the main body of public ownership. It described that under such a system of property rights and income rules, the rapid growth of China’s state-owned enterprises, as well as residents’declining share of personal income. Then,this chapter, according to China’s ownership structure, proposed that initial distribution of national income tilted to the national and state-owned enterprises.In the final chapter of this article, this paper stressed the need to continue to emancipate the mind, according to the inherent requirements of modern property rights theory, and seek new possibilities for property rights reform in country. Then, this article summarized and classified China’s scholars’policy recommendations about benefit-sharing mechanisms of state-owned assets, their proposals are mainly classified into two categories, one category is a direct mechanism for income distribution, advocating direct public dividends, or all the citizens sharing the state-owned shares, and the others argued that income should be turned over to the financial, included into the public budget to benefit the whole society.

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