Abstract This paper analyzes how China’s opening-up influences its income distribution disparity from the perspective of balance of payments by exazmining its function channels through current accounts, capital and financial accounts as well as RMB exchange rates with VAR model and Granger test, Co-integration test and impulse function analysis to further ascertain their relationships. It is found that China’s opening-up Granger causes its income distribution disparity and there is a co-integration relationship between them. Export is positive to the improvement of its income inequality while import is negative. Inward FDI helps reduce income inequality but outward FDI has an adverse effect on its domestic income equality, the net effect of FDI is positive the improvement of China’s income equality; RMB exchange rate appriciatation pushes high China’s income distribution disparity.
SHAO Jian-Chun. China’s Opening-up and its Income Distribution Disparity——a Study from the Perspective of Balance of Payments. Economic Survey, 2012, 1(5): 053.
2012, Vol. 1 
