Chinese-style Urbanization And Service Economy Development:Perspective Of Space Economy

Transforming economic development mode is a long-term issue facing the Chinese economy, which is becoming more prominent because of international financial crisis and fluctuation in global trade in recent years."Adjusting structure and steady growth" is the core objective of new central government, and urbanization becomes important guidance for force of government concerning a result of stimulating domestic demand, balanced urban-rural relations and the many reforms. Therefore, changing the traditional and extensive urbanization as to realize urbanization of population, and making best of cities group as growth pole to achieve distinguishing the division and cooperation among cities and towns are important part of new urbanization. In sense of space, on one hand, achieve coordinated development between "urbanization of population" and "urbanization of land" in the internal space of a city, and optimize the urban scale structure to play urban agglomeration economies effectively in urban system.However, the development of urban and industries are inseparable. In modern economy, the relationship of services and urban becomes more closely. Urban is the ideal carrier, and the level and quality of services is an important aspect to enhance the city’s competitiveness and influence. Therefore, analyzing this relationship is conducive to reflect the traditional path of urbanization and provide theoretical support for the new urbanization.Built-up area expanding rapidly and that average scale of cities is too small to limit the agglomeration economy in urban system, are two stylized facts for Chinese urbanization. The paper have explored the relationship between urban and services according these two spatial characteristics. Existing urban economics cannot explain the Chinese-style urban sprawl. At the same time, service economics does not reveal how urban sprawl to affect services growth. That city size distribution follows Zipf’s law has been known, however, what’s the law of services size distribution among city system? Previous studies on the agglomeration of the services are not sufficient to answer the question. In the international dimension, service trade is increasingly concentrated in the eastern coastal cities. How such spatial characteristics affect city size distribution? The author answer it based on theoretical and empirical analysis.This paper consists of seven chapters. Chapter1introduces the background, research frame and method of the paper, as well as the innovations points. Chapter2is the literature review. Chapter3summarizes the institutions and polices for urbanization and services. In Chapter4, the author points that stylized facts of urbanization in China, then builds theoretical models for urban sprawl and its impact on services, and test the for the hypothesis with panel data. In Chapter5, based on literature and speculation analysis, we put forward the hypothesis that the size distribution services. At last, according the hypothesis and the relationship between services size distribution and city size distribution, the author makes the empirical analysis. In Chapter6, we describe the distribution of international trade in services and China trade in services, and test the relationship between trade in services and city size distribution. Chapter7is the conclusion.The conclusions are as follows. At first, we put forward hypothesis for Chinese-stylized urban sprawl that Promotion incentives, fiscal decentralization, land rents are positively correlated with urban land expansion. Then empirical research basically confirms this conclusion. With area demand density and cost function, the author analyzes the relationship between urban sprawl and services growth and points that urban sprawl is not conducive to growth in services. For internal services, urban sprawl has great negative impact on low-value and traditional services. The empirical studies with panel data show those analysis are right, and relative to the Midwest, the urban sprawl’s negative impact on the services in the Eastern is more obvious, which can provide a wake-up call for the urbanization of the central and western regions. Thirdly, in city system, services size distribution follows the Zipf’s law as well as city size distribution, and the distribution of consumer services is different from producer services. The empirical researches based services value-added and services employment data tell that services employment size distribution follows the Zipf’s law, and different service industries show different spatial distributions. In the international dimension, based the OECD-WTO trade data base built on this new approach, the paper analyzes the development features of the trade in services in China, finding the competitiveness of China’s service trade is weak overall, and the gap between trade in services and trade in goods not very poor. The value-added share created abroad in agriculture and manufacturing is higher and increases year by year, the competitive of the domestic trade in services becomes weaker and the competitive of service industries weakens more slowly. At last, there is an increasingly gathering trend of trade in services of China in the eastern coastal provinces. Through regression analysis based on transnational panel data, we find the trade in services development promotes the more concentrated urban scale, especially non-OECD countries. This conclusion remains China that development of trade in services could further promote the increase of the relative size of bigger cities, thus affecting the changes in the urban system.