For my final paper, I would like to research on the income inequalities in China since the 1970s, focusing majorly on the causes and policies. The period would cover approximately 30 years, from the Cultural Revolution of the late 1960s and 1970s to the expansion of trade and foreign direct investment in the late 1980s and the 1990s. This period encompasses the system reform and economic development. I would like to research what aspects led to the income inequality among national, urban and rural Chinese residents. Additional, I would like to research the reforms China implemented to curb the situation. I will use a broad array of sources that will mainly focus on the income inequality in China, the causes, and possible reforms. Below is a brief overview of some of the possible sources that the study will draw information.
Sources and NotesKanbur, R., & Zhang, X. (2005). Fifty years of regional inequality in China: a journey through central planning, reform, and openness. Review of Development Economics, 9(1), 87-106.
I will use this journal article to research on the changes in regional income inequality in China. The authors provide a deep analysis on the evolution of inequality in China associating the peaks of inequality with the Great Famine, the Cultural Revolution of the late 1960s and 1970s, the reform of agriculture in the late 1970s and the 1980s, and the expansion of trade and foreign direct investment in the late 1980s and the 1990s. Moreover, all these occurrences affected the course of economic growth and income distribution in China. Thus, I will derive sufficient data from this source on the period under study.
Zhou, Y., & Song, L. (2016). Income inequality in China: causes and policy responses. China Economic Journal, 9(2), 186-208.
This article will provide adequate information on the historical trends and patterns of income inequality in China. I will also use it to research on the potential causes of rising income inequality. I will apply the functional distribution of income approach used by the authors to discuss China's income inequality. Additionally, I will use this source to provide information on various policy responses to income inequality in China such as the minimum wage policy, reforms to raise rural incomes, and reform of the taxation system.
Chen, Z., & Zhou, Y. (2005). Income distribution during system reform and economic development in China: The status and trend of income inequality of Chinese residents. Nova Publishers.
I will use this book to research on income distribution inequality of Chinese residents particularly, national, urban and rural residents. The source will provide crucial information since the end of the 20th century to the start of the 21st century. In particular, the book will measure and make clear the status of inequality of the consisting parts of normal income of Chinese residents. It will provide statistical methods to calculate the income inequality based on the authors' population-income Gini and regression coefficients. The statistics will increase the credibility of my research.
The remarkable reforms and economic growth in China from the Cultural Revolution of the late 1960s and 1970s to the expansion of trade and foreign direct investment in the late 1980s and the 1990s led to a rapid increase in income inequality among national, urban and rural Chinese residents.
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