Author(s)

Ruisi Zhang

Corresponding Author

Ruisi Zhang

ABSTRACT

This paper is used China's inter-provincial panel data from 2000 to 2019 to establish an OLS econometric regression model. It is empirically studied the impact of China's economic development on the income gap of residents in the past two decades. After controlling for other explanatory variables, the study found a significant positive linear correlation between economic growth and resident income inequality. It is basically in line with the actual situation of our country. In addition, this paper is put forward some practical measures for the government to curb the deterioration of residents' income gap based on the regression results of the model, such as improving residents' public education level and increasing public budget expenditure to strengthen local infrastructure construction. It is pointed out that the most critical work is to change the current unreasonable income distribution system.

KEYWORDS

Economic development, Income inequality, Panel data