The Interaction Between Urbanization And Economic Growth And Policies Of Promoting Urbanization In China

The pattern of worldwide urbanization development shows that there is a certain relationship between urbanization and economic growth. Accompany with the process of urbanization accelerated by economic growth, it has promote the sustainable development of economy, society and culture etc. In long-term period, export-oriented industrialization becomes the main driver of economic growth which is difficult to maintain, therefore the national economic development modern has to be alternative urgently. The complementary relationship between urbanization and economic growth provides differential orientation for achieve the sustainable economic growth, and the interaction mechanism is explored to clear the path which can help urbanization promote economic growth. As well-known, the urbanization is an agglomerationeconomy which highly centralized process of various elements including labor force, capital, technology, information and so on in a certain space. Nowadays,under the new normal which economic growth slowdown, industrial structure optimized, innovation driven development, it has significance to discover the effect for urbanization and economic growth by study the intermediary role factors which include the technology innovation, agglomeration economy and economic structure.Base on the previously research, in order to study the characteristic and interaction relations between urbanization and economic growth, this paper adopt the method of normative and empirical analysis, qualitative and quantitative analysis. Adopt normative and qualitative analysis in the study of three variables in the relationship between urbanization and economic growth which are technological innovation, agglomeration economy and economic structure. Positive methods and quantitative analysis are used to prove theoretical mechanism and analysis actual effect. The integrated use of various methods could provide multi-analysis the relationship of urbanization and economic growth.The content of this study contains seven parts.Part 1:Present the background, theoretical and practical meaning, and the relative research of urbanization and economic growth to carry out literature review, clarify research ideas, methods, contents, structure arrangements and innovations.Part 2: Present the theoretical basis. Base on urbanization and economic growth with the theory study, analysis and general pattern, put forward the concept of urbanization and define method, summarized the theory of economic growth, discover the intermediary variable of urbanization and economic growth model.Part 3: Analyze the relationship of urbanization and economic growth. This part describes and discoversthe national urbanization process evolution and space characteristics. In order to prove a positive correlation between urbanization and economic growth, cross-section data and time series data are used to carry on statistical description and analysis of the preliminary fact.Part 4: Present three variables interact relationship astechnology innovation, agglomeration economy add the economic structure as intermediary factors.Adopt Granger causality test, Co-integration test, Impulse response and other methods to prove technology innovation, agglomeration economy and the economic structure have significant effects on urbanization and economic growth respectively.Part 5:Present empirical studyto prove the interactive relationship between urbanization and economic growth.First of all tointroduce the panel model including fixed effects model, random effects model, co-integration model and dynamic panel. Secondly set model of the panel on the basis theory and empirical research. Through variously testing to define the most suitablefixed effects model to analyze the effect to urbanization and economic growth by technology innovation, agglomeration economy andeconomic structure. According to the empirical results, its specific policies are further analyzed.Part 6: Analyze the urbanization development process and characteristics in developed and developing countries, in order to accumulatesuccessful experience and avoid the failure practice in developing countries. At the same time, according to the urbanization mode of developed regions in China and the situation of economic development, this paper puts forward the enlightenment from domestic and international experience.Part 7: Focus on tendency of now normal economicdevelopment, conclusion the discussion above and prospect the future development tendency, and provide the rational policy suggestion to accelerate the urbanization process.