Nonlinear Effect of State Ownership Economy on the Income Gap of Residents

FU Yuanhai

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Journal of Guangzhou University (Social Science Edition) ›› 2015, Vol. 14 ›› Issue (5) : 29-35.

Nonlinear Effect of State Ownership Economy on the Income Gap of Residents

  • FU Yuanhai
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Abstract

There are nonlinear relationships between state ownership economy and income gap. The paper make threshold cointegration test with smooth transition regression model and gradually adding the control variables. Results shows that there exit threshold cointegration relationship between state ownership economy and Gini coefficient. Negative role of state ownership economy reaches or closes to the largest on income gap of dweller when state ownership economy proportion is higher than 0.332 from 1982 to 1997. Effect of state ownership takes a nonlinear change while the proportion of state ownership economy decline to 0.332. Role nature of state ownership takes change on the resident income gap in 2000 when state ownership economy proportion drops further. Positive role of state ownership economy reaches or closes to maximum on income gap of dweller from 2002 to 2010.

Key words

State ownership economy / The income gap of dwellers / Threshold regression model

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FU Yuanhai. Nonlinear Effect of State Ownership Economy on the Income Gap of Residents. Journal of Guangzhou University (Social Science Edition). 2015, 14(5): 29-35

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