Abstract The initial factor income distribution has an important impact on the development of the economy, which will affect the overall consumption of the society and further influence the economic growth. Using the provincial panel data from 1993-2015 and fixed effect model, the empirical analysis finds that the share of labor income has significant impact on consumption, and the consumption function complies with the C-D function form; the relationships between the share of labor income and GDP growth rate, between that and GDP growth rate per capita present a “U” shape curve, while the relationships between the urban-rural income gap and the growth rate of GDP, between that and the growth rate of GDP per capita present an inverted “U” curve. Labor income share has a negative impact on economic growth rate while the impact of consumption rate on economic growth rate is a significantly positive one. The cross term of labor income share and consumption rate also has a negative impact on economic growth rate. It shows that as the main source of income, labor income decline results in a drop in income, in consumption, and further leads to a weak economic growth. From the perspective of the regional development, the trend of impact of labor income share and urban-rural income gap on economic growth is consistent with the national trend. Except for the northeastern region where there is a significant positive impact from consumption rate on economic growth, this impact in other regions are insignificant. Fixed assets investment shows a significantly negative impact on economic growth rate. In order to realize the economic transition towards a consumption-driven one and to share economic development results, the proportion of workers’ compensation in primary distribution should be raised.
XU Chang-Jian,YUAN Yi-Meng. The Structure of Factor Income Distribution, Residents’ Consumption and Economic Growth. Economic Survey, 2018, 35(6): 0121.
2018, Vol. 35 
