The Interaction between Income Distribution and Economic Growth

Liu Lin and Qin Wanshun

Peking University

Editorial note:

Since reform and opening up, there has been a steady and rapid growth in the Chinese economy, but, at the same time, the income gap continues to widen and polarization is becoming increasingly serious. Thus people cannot help but wonder whether a causal relationship exists between economic growth and the income gap. If so, what kind of causal relationship is it? The following article will study this subject by applying methods of calculation.

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