Journal of Jishou University(Social Sciences)

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An Empirical Study on the Relationship among Economic Growth,Openness and Income Inequality

WANG Peixuan   

  1. (College of Marxism,Nanjing University,Nanjing 210046,China)
  • Online:2017-05-01 Published:2017-05-06

Abstract: The income inequality of China is not only caused by economic growth,but also by some factors of economic opening.The income gap might have been narrowed because the imports of semi manufactured goods have increased domestic employment opportunities,and the imports of foreign high-quality cheap goods have broken certain domestic industry monopoly.However,China’s import structure is not reasonable,because it depends too much on the importation of energy and high technology products.Exports will expand the income gap,because China’s processing trade exports are basically embedded in the low-end of the global value chain,so the higher the export volume,the lower the price and the income of workers.Foreign investment has obvious geographical and industry selectivity,so it will expand the income gap between regions and industries.Therefore,in order to reduce the income inequality,we should maintain the “new normal” economic growth in the medium speed on the one hand,and on the other hand take a new path of openness.The first is to improve the structure of imports;the second is to develop the domestic consumer market through the supply side reform,and the third is to reduce the dependence on foreign capital appropriately to deal with the trade-protectionism policy of developed countries such as Britain’s secession from the European Union and America’s secession from TPP.

Key words: economic growth, openness, income inequality

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