Research On Internal Operating Mechanism Of Urbanization And Interacting Effect Between Urbanization And Economic Development

On the basis of past literatures, this paper discusses the mechanism of interaction between urbanization and economic development from microcosmic and macroscopical angles, and gets some good conclusions. This paper shows that the essence of urbanization roots in the division of labors and specialization of production, and labors assembling in city are the inevitable result and indispensable premise of increasingly improvement of division and production.To validate above proposition, the paper uses the theory of labor migration to construct a model of urbanization in which the division of labors occurs. The model shows that the scale of city increases when industries of city thrive, and the scale reaches the optimum when city income equal to rural's. However, the city always tends to expand. A important conclusion of my model is that agglomeration economies emerge if the technology of search exhibits increasing returns to scale, and that the expand of city increases the labors' income, enhance the factories' expect output and decrease rural labors.The paper then explains macroscopically the mechanism of interaction between urbanization and economic development. Furthermore, it differentiates the four steady states emerging during the interaction process. Then it describes the characteristics of the phases of Chinese urbanization process and points out the imbalance of economic development in China determines the discrepancy of urbanization levels in different areas. On the basis of above analysis, we construct a prediction model of urbanization levels and a model estimating the level of contribution of urbanization to economic development. Then we use the Chinese data to verify these two models.Finally, I discuss the conditions in Chongqing to exemplify the choice of the path to urbanization. Taking the status in quo of Chongqing's urbanization into account, I demonstrate that the optimum choice of path to urbanization of Chongqing is to develop the large city or core city, and subsequently I give some related advises and policies.