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Commercialization, Change in Economic Structure and Transformation in Government Policies of Economic Structure——China's Experiences

Zhou Ye'an;Zhao Jianyi  
Since China has adopted the policy of reform and opening to the outside world, her sustained and rapid economic growth has been maintained, but at the same time it has brought forth imbalance in regional and industrial growth, which has affected residents income and resulted in inequality in in- come distribution, thus planting hidden peril to the future sustained steady economic growth. A poli- cy for rational readjustment of economic structure should lessen this inequality to the greatest extent, but it needs the study of economic root thereof. By formation of the commercialization index indicat- ing the progress of China's commercialization, and by an integrated analysis, made by use of an inte- grative model, of commercialization index, government policies, the data of industrial growth, regional development and income level, we have found that the commercialization process itself has brought about the widening of the gap in regional and industrial economic growth, leading to inequality of in- come distribution while the effect of the policy for structure readjustment was good enough. In this article, we suggest that the government's future policy for economic structure adjustment should shift from being growth-centered to transfer-expenditure-centered.
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