Income Disparities In China: An Oecd Perspective (China in by Organisation for Economic Co-Operation and Development

By Organisation for Economic Co-Operation and Development

China has skilled incredible monetary development for the reason that 1978, averaging eight to nine% in keeping with 12 months. for that reason, on commonplace, people's lifestyle is way better than ever earlier than in China's background. although, fiscal disparities have additionally widened very considerably in this interval, elevating questions about the appropriateness and sustainability of present guidelines. This ebook contains the papers from a seminar held in Paris on 20-21 October 2003 to discover the motives of China's turning out to be monetary disparities. The seminar was once organised via the OECD and the nationwide improvement and Reform fee (NDRC) of China. The papers via chinese language and OECD specialists examine the riding forces in the back of those traits and talk about attainable coverage responses. the gathering provides many comparisons with source of revenue inequality tendencies in OECD nations, together with geographic disparities, and appears at how you can increase chinese language info on source of revenue distribution. This booklet is a part of the OECD's ongoing co-operation with non-member economies world wide.

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Additional resources for Income Disparities In China: An Oecd Perspective (China in the Global Economy)

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Only when the income disparity reaches a certain point can it be regarded as polarisation. It is argued that, while income inequality in China is currently increasing, it has not yet reached the state of polarisation (Liu Shaobin, 2002). Critical value for the Gini coefficient If polarisation is a state, a criterion should be set to define this state. Scholars thus suggested the Gini coefficient as an indicator, and many critical values of the Gini coefficient defining polarisation have been proposed.

The first and most commonly mentioned policy preference is that during the early years since the reform and opening-up, the government set preferential policies for the eastern region, investing heavily, and allowing the region to lead the reform and opening-up. Preferential policies were developed in foreign investment, taxation and banking for the eastern region. These beneficial policies significantly expedited economic growth and the technological improvement of the industries in the coastal regions.

Therefore, increasing income disparity among individuals is an unavoidable result of the transformation from a planned economy to a socialist market economy (Yu, 2002). Institutional effects Many institutional factors affect household income distribution. The most direct effects of social and economic institutions on income distribution include unsatisfactory protection for the poor and ineffective adjustment of high incomes. The unsatisfactory protection for the poor resulted from the less developed social security system (Liu, Niu and Shi, 2002; Cao, 2002; Lu, Wang and Zhu, 2002).

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