Introduction (2-3 pages),
Literature Survey (1-2 pages),
Theoretical Arguments and Regression/Statistical Analysis/Data Analysis (10-15 pages)
Conclusion (1-2 pages)
*Please use OLS in the paper. The following youtube channel has several useful videos about OLS and its implementation in Excel : https://www.youtube.com/user/bionicturtledotcom/search?query=regression
Please try to follow my outline:
Introduction
In this part, I will explain what is income inequality and both positive and negative effect. And I am going to compare the affect on developed countries and developing countries. Since my topic is about income inequality and GDP growing, I’ll use the data from World Bank to make a coordinate system. X-axis would be gini index and y-axis would be GDP growing.
Three main points
What is the household income inequality of some group of countries affect on GDP growing?
1． There are two opinions: the first is income inequality promotes economic development and social progress. On the opposite the other is income inequality inhibits economic development.
2． According to the data of gini index from World Bank, the income inequality inhabits economic development after 1990s.
3． It’s dependents on the level of economic development of different countries. In poor countries, which are the developing countries income inequality inhabits economic development. But in the developed countries the larger income gap they have, the faster GDP grows they will make. (Robert Barro’s Research)
The income inequality has the negative effect on GDP growing in China.
1. In China, with the GDP grow, income inequality also increase. I’ll use a graph to explain.
2. Compare the specific differences. Such as income gap between urban and village, between executive and employee.
3. Income gap in different industries.
4. Negative effect on economy. For example, huge income gap impact social justices and social stability.
5. Affect economic structure and industrial structure, and then affects GDP grow. I am going to talk about middle class, because the GDP growing depends on how much middle class people the country have.
How to adjust household income and promotes economic development
1. Shift from agricultural to nonagricultural
2. Improve population education
Reference
Gini coefficient: http://data.worldbank.org/indicator/SI.POV.GINI
GDP of countries: http://data.worldbank.org/indicator/NY.GDP.MKTP.CD
Research of Robert Barro:
http://scholar.harvard.edu/files/barro/files/inequality_growth_1999.pdf
Impact of middle class:
http://www.google.com/url?
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