Over the past few days, followed by an open vote conducted by 217 economists, including famous personals from Chinese economic universities, major research institutions, and major economic and academic media, a list of successful candidates of the 8^th China Economic Theory Innovation Award was finally unveiled. The theory of “Income Distribution in China’s Economic Transition and Development” mainly contributed by Prof. Li Shi, Prof. Zhao Renwei and Prof. Chen Zongsheng obtained 142 votes. The China Economic Theory Innovation Award was initiated in 2008. Candidates were elected every year or every two years, base on the degree of contribution to economic theory. Awards are mainly issued to key Chinese economic theories based on the test of practice. The awarded prize worth one million yuan, which is the largest amount of award so far in China in the field of social sciences.

Prof. Li Shi from BNUBS is the Executive Dean of China Income Distribution Research Institute and the Distinguished Professor of “Chiangjiang Schorlar”. He has been conducting studies on China’s income distribution for over thirty years, and has achieved numerous academic achievements and has nurtured dozens of high-level talents. He has won Sun Zhifang Economic Award and Zhang Peigang Development Economics Award three times, and was one of the few scholars who had won the most significant awards in the economic field in China.

Introduction to the award-winning theory:

The theory of “Income Distribution in China’s Economic Transition and Development” learns from the analytical methods of modern economic studies and China’s national conditions, which studies particularly on “income distribution” issues in China. The theoretical system is closely linked to China’s major economic transition from dualistic economy to monistic economic structure, and from planned economy to market economy. Base on the conditions, roots and trends of China’s household income distribution, the theory explains and solves problems in the income distribution system. The theoretical system consists of the following aspects: (1) understandings of China’s condition and tendency of income distribution before the economic transition; (2) the development direction and reasons of income distribution during economic transition; (3) the relationship between China’s economic development and income distribution----the inverted “U” model of income disparity in state owned economy; (4) the relationship between China’s economic development and income distribution----base on the explanation of empirical studies; (5) combination of theoretical and practical studies; (6) micro-statistical base of income distribution for nearly 30 years; (7) the theory of China’s Income Distribution in internationalisation. After thirty years of hard work and diligent study, Chinese economic scholars learned from international research achievements, research methods and experience, and developed a precise series of CHIP that recognises Chinese income distribution before and after the reform and its development since 1980s till present. Base on mature methodologies, experience and data, scholars from home and broad ripped more fruitful results in understanding the transition of Chinese economy and its key role in income distribution.

The theory is mainly demonstrated in 3 aspects: (1) the importance of income distribution in national economy; (2) importance of income distribution situations in all stages of development; (3) Base on the previous studies, discover the importance of resolving income distribution issues.

This research achievements are obtained by researchers including Prof. Zhao Weiren, Prof. Li Shi, Prof. Chen Zongsheng and others. They have done great contributions to understanding and resolving China’s income distribution problems. The significance of their contribution is mainly manifested in the following aspects:

(1)   They have precisely described the situation and direction of China’s income distribution before the economic transition, which is of important significance to China’s income distribution. Therefore, their major achievement is awarded with the Sun Zhifang Economic Award in the 1^st and 2^nd year.

(2)   They have concluded and explained issues concerning China’s income distribution during the reform and transition, and proposed four major aspects and around 20 factors that may influence China’s income distribution. Therefore, one of the achievement done by Prof. Zhao Weiren and Prof. Li Shi was honoured with the Sun Zhifang Economic Award in the 6^th year. The publication edited by Prof. Li Shi was also awarded with the 3^rd Zhang Peigang Development Economic Award.

(3)   The newly proposed “Inverted U Type Model of State-Owned Economy” with distinct Chinese characteristics takes the labour income and labour disparity as two important variables. The model pays great attentions to the limitations on income distribution disparities caused by various supply and demand situations of labour forces. It emphasis on the influence of industrial structure changes in economic development, which reflects major features of China since the reform and opening up and supplements the weak points in previous researches. The book “Income Distribution in Economic Development” by Prof. Chen Zongsheng was awarded with the 3^rd prize in Excellent Social Sciences Publication Award of Tianjin Province.

(4)   They have promoted the research of income distribution towards internationalisation and a higher level. The research project lead by Prof. Zhao renwei and Prof. Li Shi started since 1988, and has lasted until today. The project has attracted numerous international scholars, absorbed international experience and methods, applied theoretical and empirical studies into China’s income distribution studies, and promoted the international and modernisation of China’s income distribution research. Their research is completely thorough. It clarified the origin and nature of related methods by accepting new and advanced measures.

(5)   The project investigation is extremely consuming in terms of both labour works and material resources. The process was most difficult at the beginning of reform. However, their perseverance and insistence laid a meticulous foundation for the research. With the help from abroad, the achievement is fruitful and of great significance to China’s income distribution issue during the economic transition.