MATEC Web of Conferences 4 4, 0 2 0 50 (2016 )
DOI: 10.1051/ m atecconf/ 2016 4 4 0 2 0 50
C Owned by the authors, published by EDP Sciences, 2016
Pattern of Ownership and Income Distribution:In View of
“Middle-Income Trap”
Rui Na Liu
The People’s Bank Of China
ZhengZhou Training Institute
Abstact: China comes into the ranks of middle-income countries, "middle-income trap"
problem become highly attention. Income inequality is the most important factor of fall into this
trap. By analyzing the actual information and data, finds out that the main reason for this
widening gap between income distributions is the vigorous developments of the private owned
company, led to the big gap of the income between owner of the company and normal workers.
Then by analyzing and validating the actual mathematical model, and turns out the same result.
To solve the problem of “middle-income trap”, we must deal with the income inequality, need to
strengthen the guidance and supervision while encourage the development of the private
economy. Unswervingly adhere to the public sector of the economy's dominant position, and
continue to develop and perfect the public sector of the economy, along with the corresponding
supporting measures.
With Over 60 years development, at present,
system problems, to some extent these are
China's per capita gross domestic product has
reasonable. However very few relating to the
exceeded
of
root of the actual pattern of ownership. This
middle-income countries. Whether China can
$4000,
paper combines the actual conditions of China,
successfully avoid middle-income trap and
guided by the Marxist distribution theory and
how to avoid the trap problem become the
using the mathematical model, as a trial for the
focus of scholars attention. However, learn
analysis of the root of the unfair distribution in
from the lessons of that fact that those
China.
countries,which
entered
failed
to
the
ranks
achieve
the
transformation of the middle-income shows
that income inequality, wealth disparity is the
important
developing
factors
of
leading
to
countries
falling
into
many
the
middle-income trap. Warning by World bank
report ljRevival of the east asiaNJ, to prevent
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Since reform and opening up, China's
the
economy has continued rapid growth, from
middle-income trap, need to solve the problem
1978 to 2010, China's gross domestic product
of widespread income inequality . Many
(GDP) grew by an average of 9.8% a year.
scholars tried to find the reasons from the
China's GDP in 1978 is $147.3 billion, and
industry, the gap between the state-owned
2010 is 5.8786 trillion, increased by 40 times,
enterprise managers and worker, corruption,
Per capita GDP in 1980 is $173, $4000 in 2010,
east
Asia
economy
falling
into
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MATEC Web of Conferences
increased by 23 times, become the world's
mathematical
second-largest economy only after US. China's
scientific principles of economics, can more
economy accounted for the proportion of the
clearly explain economic problems, enhance
world economy from the late 1970’s less than
the explanatory power of the article. So, now
1% to over 9% in 2010, become
the fastest
we will build and analyze model from the
growing economies in the world at this period.
perspective of ownership, and specifically
But the social welfare created is not spread by
explains the relationship between ownership
revenue and let all people equally share the
and the distribution of income.
results. We found that gini coefficient of the
internal of urban residents and the entire
residents is in the growing. Gini coefficient of
urban residents increased from 0.161 in 1981
to 0.323 in 2007.the entire residents gini
coefficient, up from 0.297 in 1981 to 0.454 in
language
to
describe
the
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2007. Both gini coefficients of the internal of
Within the private ownership economy, the
urban residents and the entire residents, in
enterprise owners to produce the biggest
addition to individual years slightly smaller,
purpose and motivation is unlimited pursuit of
are
surplus value created by workers. We use m
growing.
phenomenon
This
of
suggests
unfair
that
distribution
the
in
deteriorating.
stands for
the surplus value, use k stands for
economic growth is not synchronized growth
m
value of the labor force, with v
in people's income, but the field of distribution
of average Labour exploited, n for the number
and widening the gap between rich and poor,
of workers with said use, we can conclude:
This to show that along with the rapid
polarization trend. The study found that the
widening gap between income distribution in
our country also is the main source of the
private enterprise to develop. Of course, from
the point of view of economic development,
we must fully recognized great contribution of
the private enterprises to the development of
social productivity in the primary stage of
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ku
m
un
v
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socialism. But on the other hand, the income
distribution gap is widening. The causes of
M1
ku
m
u n1
v
ˈ
M2
ku
m
u n2
v
unfair distribution in our country and the
disparity between the rich and the poor is to
lead the capitalist private ownership and poor
regulation, is the inevitable result of the
the degree
Here assumes an average labor value k
remains the same, and the degree of an average
excessive exploitation.
m
labor exploited v also remains the same.
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The ownership allocation relationship and
the principle of distribution, the mathematical
model can be used to represent. Using
02050-p.2
M 1 On behalf of the original residual value,
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M 2 on behalf of growth after the surplus value
to add a certain amount of surplus value
created by workers.
another factor increases to compensate. So
production, a kind of factors can reduce by
This show, with the accumulation of capital
m2 m1
!
n2 n1 ,and v2
v1 , but, the capitalists in
and growth, the capitalists will gain more
order to achieve the goal of their own money,
surplus value.
will inevitably make the change of the number
Soˈwhen
n2 ! n1 ˈthen Ÿ M 2 ! M 1
of workers less than the variation of surplus
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'n '
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value, so it is
OHDGWRWKH M 2 ! M1 .
H[SORLWDWLRQRIZRUNHUVGHJUHHLVPRUHDQG
m
v , and so it must be
On the other hand, makes the enterprise
owners try to hold down wages. Because,
capital accumulation and the relationship
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between the wage rate, population "in the final
In the process of capital accumulation,
analysis is the same workers provide the
"once the capitalist system of the general
unpaid and paid labor relations" . As long as it
foundation
impact to the business owners to make money
laid down, will appear in the process of
or production of surplus value, they will surely
accumulating a moment, then the development
try best to hold down wages and make
of social labor productivity become the
accumulation of the most powerful levers",
k1 ! k2 . Because n2 n1 ,and the change of
"Social productivity level is characterized by a
the number of workers is less than wages,
worker in a certain period of time, in the same
'n 'k , so it must be M 2 ! M 1 .
labor intensity make it into a product of the
relative amounts of means of production", "the
So will see, In a private ownership
growth of labor productivity, will show that the
economy, with the accumulation of capital and
amount of labor will be relative reduction than
growth, the enterprise owners will occupy
the quantity of production data it promote ". So
more
M
to say, n is reduced in
and
more
surplus
value
and
capital.Brought by the accumulation of capital
m
k u un
v
.
"is the accumulation of wealth, and in the other,
in their own products as capital to production
However, the production of surplus value
of class, is poverty, torture, slavery, ignorance,
or to make money, is the absolute rule of
rough,
private
of
corruption."of Marx's on capital accumulation
production. With n reduced, will cause the
in private ownership economy law is a
existence of relative surplus population.This
scientific principles of economics, the private
creates two aspects of the consequences.
economy in the primary stage of socialism is
ownership
economy
mode
On the one hand, makes the enterprise
and
the
accumulation
of
moral
applicable.
owners do all we can to strengthen the
exploitation of workers. Because, if you want
02050-p.3
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h z
HFRQRP\DQGSULYDWHRZQHUVKLSHFRQRP\
g y LQFUHDVH᧨ f x GHFUHDVH
In
the
distribution
primary
stage
according
to
of
socialism,
work
is
the
fundamental principle of the public sector of
the economy.Although there are different
laborer itself the individual talent, there is a
difference on the physical and mental, and
social labor provided by different workers in
quality and quantity must be different, that
cause
the
difference
of
their
That is g y1 g y2 ˈ f x1 ! f x2 Because f x g y h z is invariantˈ
'f x so
Setup
primary stage of socialism is inevitable, and
the private ownership economy in the capitalist
free possession of workers' surplus value that
inequality with characteristics of exploitation
is fundamentally different.
mf x2 ng y2 lh z2 f x2 g y2 h z2 in the public ownership and private ownership
DŽ
economy and other economic elements of the
From m n
population function be
h z
,
f x
ǃ
g y
f x
and
ǃ
g y
h z
M
J1 ˈ
J 2 ˈamong
f x2 g y2 h z2 Ÿ
ǃ
are the
continuous function of a random variable
xǃyǃz . Eliminate the effects of various
factors such as population reproduction,
assuming
,That
mf x1 ng y1 lh z1 f x1 g y1 h z1 f x1 g y1 h z1 Assuming that urban industrial enterprises
'g y is f x1 f x2 = g y2 g y1 DŽ
personal
income.But the relative inequality, it is the
as invariant and m n .
f x g y h z M
=
.
m( f x1 f x2 ) n( g y2 g y1 )
Ÿ
mf x1 ng y1 mf x2 ng y2 Because
lh z1 lh z2 ˈ
so
Ÿ
2.3.According to the weighted average, the
mf x1 ng y1 lh z1 mf x2 ng y2 lh z2 inequality of the whole society can be
as
mf x ng y lh z f x g y h z Ÿ
J
,
and
m, n, l be the gini coefficient of public sector
of the
economy and private economy and other
economic elements. Here mainly considering
the changes of the gini coefficient of public
sector of the economy and private economy, so
in the process of analysis it is assumed l and
02050-p.4
mf x1 ng y1 lh z1 mf x2 ng y2 lh z2 M
M
That is J1 J 2 ˗
g y GHFUHDVH᧨ f x LQFUHDVH
That is g y1 ! g y2 ˈ f x1 f x2 .
So this show that in the primary stage of
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socialism, when the component proportion of
of the existing management system of the
private ownership economy increase, thus
public sector of the economy.(2) develop the
when
new public ownership enterprises.
the
increased
number
of
private
ownership economy in the enterprise, the
degree of inequality, When the increased
number of the public sector of the economy in
the enterprise, reduce inequality. Distribution
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relations, it seems, is only a performance and
In the labor market, the norm is oversupply
ownership structure as a result, the relationship
situation, so business owners with its dominant
between ownership structure determines the
position, hold down wages, reduce the welfare
distribution and allocation.Income distribution
of
inequality is inevitable outcome of the
environment, etc., laborer is in absolute
development of private economy energetically.
disadvantage in the market. Now have to pay
Private ownership to expand once more than a
more attention to the protection of laborers .It
certain "degree", "let the development benefit
requires, in areas such as labor, wages and
of all people" can not be truly implemented.
social security and improve the relevant laws,
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revealed that the development of private
economy of our country has important
influence on the change of the income gap, to
effectively resolve and narrow the income gap
polarization
phenomenon,
the
workers
work
the legislation, Also take certain way to
workers
learn
the
legislation,
guidance and education, make laborer know
The above facts and modeling study
a
ignore
and then carefully propaganda and carry out
organize
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and
workers,
the
when to use law to protect their legitimate
rights and interests.
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WKHWD[V\VWHP construction of a harmonious society, make the
Here, the adjustment of tax burden is not
reform results benefit to all the people, we
general tax cuts, because the general tax cuts
must find the clues to solve the problem and
can not solve the problem of disparity between
countermeasures from the ownership level.
the rich and the poor [1]. Should distinguish
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between different classes, adjust the tax burden,
increase a decreases, strict tax system. For the
rich, should be moderate tax increases, prevent
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the defect of tax "reverse adjustment", and
Because the public sector of the economy
modest gift tax levy inheritance tax, property
is to realize the common prosperity of the
tax, etc. For broad laborer stratum, should
economy foundation, loss or weaken the
further improve the income tax threshold,
foundation would be impossible to achieve
reduce the tax ordinary working-class, cancel
social justice people expected. It needs to take
the tax of the low-income group. In addition,
concrete measures from the practice, continue
also intensify tax regulation, strict enforcement
to develop and improve the state-owned
of tax law, avoid tax evasion.
economy
and
collective
economy
and
strengthen the control and guidance force.
Specific measures include: (1) deepen reform
02050-p.5
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As defend workers' rights organization,
Unions and the federation of industry and
commerce, should play their proper role. In
our country, on the contrary, the unions tend to
lack independence and autonomy, even too
much curry favor with the management. This
state of affairs should be changed. Give full
play to its care help worker and its worker,
supervision, and promote enterprise strictly
enforce the labor law, etc. Federation should
actively cooperate with related departments,
guide
and
education
business
owners
law-abiding, to improve the operation and
management,
so
as
to
promote
the
development of industry and commerce.
7R VWUHQJWKHQ WKH WKHRUHWLFDO
HGXFDWLRQDQGSURSDJDQGD Influenced by the thoughts of all kinds of
"westernization",
Marxism
has
been
marginalized, and the tendency of weakening,
this time more to strengthen the theoretical
education and propaganda, let the sinicization
of Marxism occupy the ideological position,
enhance people's consciousness. Formally,
should adopt flexible and varied ways,
enhance persuasion. Through education and
publicity, not only to improve the leadership
and cadres of socialist consciousness, good
and evil, also should go deep among the
masses, improve discrimination, so as to keep
a clear head, in front of the right and wrong,
choose rational decisions.
5HIHUHQFHV
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