Ownership, trickle-down effect and shared development: a political economy analysis
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 the...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2022-12-01
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| Series: | China Political Economy |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/CPE-10-2022-0015/full/pdf |
| _version_ | 1797791612928000000 |
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| author | Kaicheng Gai Yongsheng Zhou |
| author_facet | Kaicheng Gai Yongsheng Zhou |
| author_sort | Kaicheng Gai |
| collection | DOAJ |
| description | 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. |
| first_indexed | 2024-03-13T02:21:17Z |
| format | Article |
| id | doaj.art-b5336f4ce10b4cafb0d561032968801c |
| institution | Directory Open Access Journal |
| issn | 2516-1652 |
| language | English |
| last_indexed | 2024-03-13T02:21:17Z |
| publishDate | 2022-12-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | China Political Economy |
| spelling | doaj.art-b5336f4ce10b4cafb0d561032968801c2023-06-30T09:21:42ZengEmerald PublishingChina Political Economy2516-16522022-12-0151527110.1108/CPE-10-2022-0015Ownership, trickle-down effect and shared development: a political economy analysisKaicheng Gai0Yongsheng Zhou1School of Economics, Southwestern University of Finance and Economics, Chengdu, ChinaSchool of Marxist, Zhejiang University of Finance and Economics, Hangzhou, ChinaPurpose – 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.https://www.emerald.com/insight/content/doi/10.1108/CPE-10-2022-0015/full/pdfOwnershipTrickle-down effectPoverty reductionIncome distributionShared development |
| spellingShingle | Kaicheng Gai Yongsheng Zhou Ownership, trickle-down effect and shared development: a political economy analysis China Political Economy Ownership Trickle-down effect Poverty reduction Income distribution Shared development |
| title | Ownership, trickle-down effect and shared development: a political economy analysis |
| title_full | Ownership, trickle-down effect and shared development: a political economy analysis |
| title_fullStr | Ownership, trickle-down effect and shared development: a political economy analysis |
| title_full_unstemmed | Ownership, trickle-down effect and shared development: a political economy analysis |
| title_short | Ownership, trickle-down effect and shared development: a political economy analysis |
| title_sort | ownership trickle down effect and shared development a political economy analysis |
| topic | Ownership Trickle-down effect Poverty reduction Income distribution Shared development |
| url | https://www.emerald.com/insight/content/doi/10.1108/CPE-10-2022-0015/full/pdf |
| work_keys_str_mv | AT kaichenggai ownershiptrickledowneffectandshareddevelopmentapoliticaleconomyanalysis AT yongshengzhou ownershiptrickledowneffectandshareddevelopmentapoliticaleconomyanalysis |