This paper examines the short- and long-run effects of manufacturing capital utilisation on income distribution and social welfare of an economy. A rise in manufacturing capital utilisation lowers the effective cost of capital. This increases the demand for capital in the urban sector, which raises firm output and profitability but reduces the availability of capital in the rural sector. Unskilled wage is lowered. Thus, a rise in manufacturing capital utilisation increases income inequality in the short run. In the long run, due to the firm-entry effect, a rise in manufacturing capital utilisation further exacerbates the inequality situation. Empirical analysis confirms the theoretical findings. In particular, a one per cent increase in manufacturing capital utilisation leads to about 0.58% increase in income inequality, of which the contribution from the firm-entry effect is about 28%.

中文翻译：

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制造业资本利用、企业动态和工资不平等

本文考察了制造业资本利用对一个经济体的收入分配和社会福利的短期和长期影响。制造业资本利用率的提高降低了资本的有效成本。这增加了城市部门对资本的需求，从而提高了企业产出和盈利能力，但减少了农村部门的资本可用性。非熟练工的工资降低了。因此，制造业资本利用率的提高在短期内加剧了收入不平等。从长远来看，由于企业进入效应，制造业资本利用率的上升进一步加剧了不平等状况。实证分析证实了理论发现。特别是，制造业资本利用率增加 1% 会导致收入不平等增加约 0.58%，