The Basic Research of Income Distribution and Economic Growth in China

Abstract

Summary:

The distribution of income and economic growth has been the hot spots of the economics and also one of the quite disputable questions in the research fields of economics.Up till now people have not given out a satisfactory and very effective explanation yet theoretically. With the rapid development of China’s economy, there have some new factors make new influences in the distribution and income. The theory research is as a whole behind the reality assignment change. Consequently, it is necessary to use the scientific mode of thinking and research approach to deepen the analysis and discussion systematieally again as to this question according to realistic economic condition and environments. The paper is basic on neo Cambridge growth model, to Established econometric model to do Co-integration test and Granger Causality Test for the Correlation between income and Savings, investment, Gini coefficient and economic growth in China. Come to the conclusion that model and Status of the effect between income distribution and economic growth are Coincided, and According to the results I give the Conclusions and policy recommendations.