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INTERNATIONAL
ORGANISATIONS
RESEARCH
JOURNAL

ISSN (Print) 1996-7845

ISSN (Online) 2542-2081



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Y. Wang (Translation ed. by: Marina Larionova)

China

2013. Vol. 8. No. 3. P. 169–180 [issue contents]

Yihuan Wang - Executive Director of Research Center for International Development, Professor, Assistant Dean of College of Humanities and Development, China Agricultural University, 100083, 17, Qinghua Donglu, Beijing, China; E-mail: wangyh@cau.edu.cn

Abstract

The presented paper discusses trends and causes of income inequality in China. The author also examines the influence of various forms of inequality in China on economic development and provides recommendations to reduce inequality. Despite rapid economic growth and increasing incomes of the country’s residents, Gini coefficient is still high and it has a negative impact on social stability. The author explores such forms of inequality as regional, gender, rural-urban inequality, inequality between industries as well as classes.

Income inequality between urban and rural population is increasing. Despite investments in the agricultural sector, emphasis is put on developing urban areas. As a consequence, incomes, education attainment, labour productivity of rural residents are lower compared to the urban population.

The author also discusses unbalanced regional development: the eastern China regions earn more compared to the western and central regions as the result of beneficial location and government policies aimed at developing the eastern regions.

Inequality growth negatively affects China’s economy, reducing domestic demand and hindering reforms of the economic structure. If not controlled the expanding income gap can seriously undermine the fairness and justice of society, having a negative impact on social development and stability, and damaging the construction of a harmonious society.

To reduce inequality it is recommended to establish a system in which distribution according to work input is dominant and multiple forms of distribution coexist; to strengthen the government macro-control; and to change rural-urban dual economic structure. Such tools as tax incentives, cultivating entrepreneurs’ sense of social responsibility should also be employed.

Reference

Asia-Pacific Human Development Report: Power, Voice and Rights: A Turning Point for Gender Equality in Asia and the Pacific (2010). The United Nations Development Programme. March 9.

China Statistical Yearbook (2010). Available at: http://www.stats.gov.cn/tjsj/ndsj/2010/indexch.htm (accessed 24.05.2013).

China Statistical Yearbook (2012). Available at: http://www.stats.gov.cn/tjsj/ndsj/2012/indexch.htm (accessed 24.05.2013).

Cong G. (2003) Analysis of China's Income Gap. Available at: http://law.hubu.edu.cn/mz/a01/lw04.htm  (accessed 24.05.2013).

Hurun White Paper Reported that One Millionaires per 1400 People in China (2011). Yangzi Evening.Available at: http://news.xinhuanet.com/fortune/2011-08/25/c_121906061.htm (accessed 24.05.2013).

Juhua Y. (2008) Long-Term Trend and Determinants of the Gender-based Income Gap in China. Collection of Women’s Studies, vol. 4.

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Mei W. (2012) Research on the Current Situation, Causes and Countermeasure of the Income Distribution Gap in China. Chongqing Normal University.

The National Economic and Social Development (2012). National Bureau of Statistics of China. Available at: http://www.stats.gov.cn

Statistics Bulletin (2013). National Bureau of Statistics of China. Available at: http://www.ce.cn/macro/more/201301/18/t20130118_24041171.shtml (accessed 24.05.2013).

Ruixue Z. (2012) The Effect of Industry Income Gap on Income of Urban Residents. China Business & Trade, no. 33.

Suxia B., Tongming J. (2012) Discussion on the Problems of Urban and Rural Residents' Income Gap. Macroeconomic Management, no. 1.

World Bank (2002) Gender Report – China. June.

Xiaobo H., Dong W. (2007) Gender Income Gap and Its Cause. Modern Business, no. 20.

Citation: Wang Y. (2013) Kitai [China] INTERNATIONAL ORGANISATIONS RESEARCH JOURNAL, 3 (in Russian)
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