China's Urbanization And Economic Development Research

Caused by the development of social, urbanization is a process of changing in the pattern of producting, lifestyles and living. It is a development process in the mode of political, economic, historical, cultural and geographical. The process of urbanization on human society has a major impact on the social advancement, and this is currently the world's most important social and economic phenomenon. With China's rapid economic development and the rapid urbanization process, China has received increasing attention of the internation. Push forward the process of urbanization is advantage not only to changing the dual economic structure, increasing the effective demand, but also to promoting the sustained and fast economic growth. At the same time, urbanization can narrow the gap between urban and rural incomes and reducing poverty to achieving the goal of sustainable development and build a harmonious.Using the method of theory and empirical analysis and basing on the concept of scientific development and harmonious society perspective, this paper systematic analysises inherent relationship between urbanization and economic development from several key issues related, namely economic growth and industrial and national life.(1) Research MethodsOn the basis of content and characteristics of the statistical data, this paper uses different analysis methods, which includes mathematical model of modern quantitative analysis method, grey correlation analysis and dynamic simulation of the economy.(2) Research Contents and ConclusionsFirstly, this paper researches on the relationship between urbanization and economic growth. Chapter3 use the method of mathematical analysis and chapter4 use the method of empirical analysis. This paper introduces the government's combined effects into the dual urban-rural economic structure, which affecting the urban and rural's migration decision thought economic activities. The analysis showed that, there is a long-term and stable relationship between China's urbanization and economic growth, and economic growth is a positive Granger cause for the urbanization, but urbanization is not Granger cause for economic growth.Secondly, this paper researches on the relationship between urbanization and industrial structure. Using the modern methods of quantitative analysis and cointegration theoretical, Chapter 5 of this paper foucs on the relationship between urbanization and readjustment of the industrial structure. The research's conclusion shows that, there is a long-term and stable relationship between China's urbanization and industrial structure. The changes of the ratio of outputs value and employment has strong effect of the changes in the urbanization level. In terms of the impact, the change of the ratio of employment has greater impact than outputs values.Thirdly, this paper researches on the relationship between urbanization and national life. Chapter 6 of this paper focus on the urban-rural income inequality and urbanization of poverty, which are the important issues in a national life and cannot be ignored. With China's urban-rural income gap growing, despite it combined of many factors, the process of urbanization and urban bias policy is undoubtedly an important factor. Urban-rural income gap is Granger Cause of urbanization and urbanization is Granger Cause of urban-rural income gap, but the effects of urbanization on urban-rural income gap are stronger than urban-rural income gap on urbanization. And with the progress of China's urbanization, China's overall poverty-stricken population declines rapidly both in the urban and the rural, at the same way, proportion of the population decreases rapidly both in the urban and the rural, but there is a gradual upward trend in urbanization urbanization of poverty. This chapter uses the methods of structural modeling methods and cointegration analysis. The study found that urbanization and urbanization of poverty have a stronger association.Fourth, this paper researches on the optimal urbanization ratio. Based on the mathematical model, Chapter 7 enriches and expands the concept of optimal urbanization ratio. And based on the method of economic simulation, this chapter establishs a urbanization simulation model. The model simulates a free market economy, where the residents can move freely without any cost to gain more profit and sets parameters of the simulation environment in accordance to the actual situation. The simulation model showes rural residents move to the urban for rich, which has more efficient production and more wealth, and this trend reflected in the urbanization curve, which performances a very slow start, and then rapid growth.The simulation model designes two typical economic environment, one is no government intervention, another is has government intervention by tax and fiscal expenditure. If without the government intervention, the great majority of the people moved to urban and urbanization rate trends to 1. But if with the government intervention, at late stage of the economic development, wealth gap between urban and rural areas decreases, urbanization rate trends to stable around 85 percent and the urbanization curve looks like the typical Northan S-curve.