Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319450 
Year of Publication: 
2022
Citation: 
[Journal:] China Political Economy (CPE) [ISSN:] 2516-1652 [Volume:] 5 [Issue:] 1 [Year:] 2022 [Pages:] 52-71
Publisher: 
Emerald, Leeds
Abstract: 
Purpose As an essential part of mainstream Western development economics, the trickle-down theory originates from the behavioral choices and iterations of thought on conflicts of interest in the evolution of remuneration structure in Western countries. The fundamental flaw of the logic of this theory is that it conceals the inherent implication of social systems and the essential characteristics of social structures. Design/methodology/approach This paper examines the relationships among economic growth, income distribution and poverty from the perspective of social relations of production - the nature of production relations determines the nature of distribution relations and further determines the essence of trickle-down development, and ownership is the core mechanism for realizing the trickle-down effect. Findings The stagnation or smoothness of the trickle-down effect in different economies is essentially subject to the logic of "development for whom", which is determined by ownership relationship. Originality/value To be more specific, "development for capitalists" and "development for the people" indicate two distinctly different economic growth paths. The former starts with private ownership and follows a bottom-up negative trickle-down path that inevitably leads to polarization, while the latter starts with public ownership and follows a top-down positive trickle-down path that will lead to common prosperity in the end.
Subjects: 
Income distribution
Ownership
Poverty reduction
Shared development
Trickle-down effect
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.