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A NEW PERSPECTIVE ON ECONOMIC DEVELOPMENT AND INCOME INEQUALITY
Author(s) -
CHENG WENLI
Publication year - 2006
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2006.tb00389.x
Subject(s) - zhàng , inequality , economics , economic inequality , perspective (graphical) , income distribution , government (linguistics) , database transaction , process (computing) , income inequality metrics , division of labour , public economics , development economics , economic system , neoclassical economics , china , computer science , political science , market economy , mathematics , law , artificial intelligence , mathematical analysis , philosophy , programming language , operating system , linguistics
This paper shows that, based on Yang and Zhang's (2003) analysis, economic development can be viewed as an evolutionary process of division of labour that is driven by improvements in transaction efficiency. Both economic development and income inequality are consequences of this process; there is no systematic relationship between the two. Implications of the Yang‐Zhang analysis for government policies, including the allocation of foreign aid, are also discussed.