Research On The Effects Of The Opening On Urbanization In China

Many economists and policy-makers concern China urbanization, one of the most significant topic of numerous studies nowadays.Joseph Stiglitz, Nobel Laureate in Economics and American economist, said that there are two issues affecting the world in 21 st century. One is the US high-tech industry, the other is China’s urbanization. The 18 th National Congress of the Communist Party of China(CPC) reported that Chinese economic development shall adhere to the road of new industrialization、informatization、urbanization、agricultural modernization with Chinese characteristics. In addition, the government has constantly stressed that the positive and secure new urbanization is one of the biggest driving force of economic growth and stablility, besides adhering to the new urbanization with Chinese characteristics and promoting human-centered urbanization.in conference, such as, the Third Plenary Session of the 18 th Central Committee of CPC、Government Work Report in 2014、national new urbanization plan(2014-2020. The traditional urbanization theory believes that urbanization is a “natural historical process” of domestic economic system development. With the rapid development of economic globalization, scholars begin to focus the impact of opening-up on the process of urbanization on regional-level. Therefore, studying the impact of opening-up on China’s urbanization development, and exploring how to use the opening-up to promote China’s urbanization development is a very realistic issue. In view of this fact, the paper takes 31 provinces and 284 prefecture-level cities in panel data of China as a sample, studies the impact of opening-up on China’s urbanization development based on the international trade theory 、 international investment theory and urbanization theoryFirst, this paper analyzes China’s import and export trade, foreign direct investment and the status of overall level of the urbanization development. In recent years, the regional distribution of China’s import and export have little change, and the eastern coastal region is the country’s main gathering place out of the market, followed by the middle ground, and finally is the west region. While FDI in China are concentrated in the eastern coastal and central regions, inflows less and less in the western region(except Chongqing and Chengdu), part of FDI began to shift to the central region or the western region. Comprehensive relatively high level of urbanization is mainly distributed in the city of Beijing、Tianjin city cluster, Yangtze River Delta city group, Changsha-Zhuzhou-Xiangtan Urban Agglomeration and some cities in Guangdong and Fujian, and then is central city, and the last is the western region city. For the purposes of the national level, the overall level of China’s urbanization inverted‘ U’shaped trend, the overall level of urbanization, first is rising and then declined.Secondly, the paper construction of the theoretical framework and econometric model based on the dual economy model, which based on 284 cities above prefecture level cities from 2003 to 2013 to study the effects of import and export trade panel data of urbanization. The results showed that both import and export trade significantly helped to improve the level of urbanization, and the effects of both are basically the same; combined effect of import and export trade to the population urbanization is significantly positive, and the effect of the combined effect was significantly higher than the sum of export and import. The results of the region showed that the effect of export and import on all regions of urbanization were significantly positive, and in the eastern and western regions of urbanization effect on export than import, while import in the role of the central region are greater than export; import and export trade of the combined effect of urbanization in the western region is largest, followed by the eastern, then central minimum. Through further study the marginal effect of import and export trend of urbanization in different points of the sites found that as the population of the city of quintile increasing, import and export trade showed increasing trends after the first drop, and import marginal contribution of urbanization inflection points is 25%, while exports marginal contribution of urbanization site is 75%; import and export trade of the marginal effect of urbanization comprehensive decreased first growing U trends. In addition, the paper also further study the impact of trade on the import and export of new urbanization index, results showed that: import and export trade of the combined effect of urbanization on the impact of the effect is more obvious than the simple export and import; and export effect was significantly greater than the import; export impact on the consolidated level of urbanization in descending order from east to west, the import role in the central region is the largest, followed by the eastern and then western minimal. The combined effects of import and export trade in descending order from east to west. Further quintile regression results showed that increased with the new urbanization index of sites, parameter estimation exports were significantly positive and substantially increasing trend; impact of imports on the sub-site comprehensive level of urbanization increased after the first less, and only significant at 25%、50 % and 75%; Integrated role in promoting export and import trade of the sub-site comprehensive level of urbanization are larger than the export or import, and with the increase of sites, the export or import contribution margin continues to increase.Then, according to inter-provincial data, using dynamic panel data model to investigate the effect of trade structure on urbanization development. The results shows that both the static and dynamic panel data model analysis were drawn to improve open structure, which can significantly promote the overall population urbanization process in all country, eastern region, central region and the western region. In addition, while interpreting urbanization comprehensive index to be explanatory variable, its empirical results indicated that improvement of external discharge structure is conducive to the promotion of integrated urbanization 、economic urbanization、 space urbanization and social development of urbanization, especially these phenomenon most notably in the eastern region. Additionally, the open structure has a significant impact on the urban space in the central region at the 10% significance level, and the impact of urbanization on society is not significant. The impact of opening-up structure of the consolidated urbanization in the western region is mainly reflected in the promotion of the role of economic urbanization and population urbanization and the impact of urbanization, while urban and social space was not significant.In addition, the paper analyzes the mechanism of FDI on the impact of urbanization, and constructed econometric models to empirical study FDI inflows on the impact of urbanization in China. The results showed that: under the national sample, FDI inflows will have a significant positive effect on urbanization level, while under the sub-regional samples, in the eastern、central and western regions, FDI inflows significantly promote the urbanization process, considering the impact effect, the eastern region coefficient is greater than the central region, and the central region coefficient is greater than the western region. Quintile regression results showed that with increasing of urbanization sites, FDI contribution margins on urbanization by a low score continue to reduce the number of bits to the median score, indicating the urbanization rate of FDI flows into the lower city which has a greater role in promoting its urbanization process, while compared to higher level urban cities. With the improvement of urbanization rate, this positive effect of FDI was on the decline. In addition, we also further study the impact of FDI on new urbanization index. The results show that: under the national sample, FDI inflows will have a significant positive effect on urbanization level. Under the sub-regional samples, in eastern, central and western regions, FDI inflows significantly promote the urbanization process, considering the impact effect, the eastern region coefficient is greater than the central region, and the central region coefficient is greater than the western region. Quintile regression results showed that on the sub-sites, FDI parameter estimates were significantly positive and relatively stable.Finally, according to the relevant research findings, the paper provide strategies from advancing urbanization complementary and trade quality of import and export, improving the comprehensive advantages and benefits of foreign investment utilization、optimizing the export structure of trade and foreign direct investment、developing opening-up and urbanization policy according to local conditions.