Researches On The Correlation Mechanism Between Urbanization And Economic Growth

At present, China is experiencing the largest population migration in history. From 1979 to 2009, China's floating population has increased from the original 600 million to 211 million. In 2009, China's urban resident population is 622 million. During the "Twelfth Five-Year" period and the next two or three decades, China will maintain the flowing population of more than 2 billion. Therefore, the complex changes brought by the distribution, structure and quality of the population pose a severe challenge to the national strategic planning, government social management and public service. Guiding the orderly migration and reasonable distribution of population as well as promoting the healthy development of urbanization, is, of great significance for the comprehensive, coordinated and sustainable development of China's economics and society. During the "Twelfth Five-Year" period, urbanization will greatly stimulate China's development. Under the circumstance of little growth room for external demand, China's economic growth will largely depend on the domestic demand. A vigorous development of urbanization, will, on the one hand, further strengthen infrastructure construction, expand demand of domestic investment, on the other hand, increase service demand and consumption tendencies by the concentration of population. Developing countries have become important areas of urbanization. With the rising of urbanization level in China, Jiangxi is also confronted with the problem of how to improve the degree of urbanization.Compared with other central provinces in China, the process of urbanization in Jiangxi Province-is relatively slow. It is mainly because of the lack of the leading metropolises, thus cause the lack of economic growth momentum. In light of the basic social and economic development experience of many countries and regions, only when the industrialization and urbanization of a city achieve a coordinated development will the role of the city be maximized and the economic efficiency be improved and social and economic development be realized. Vigorous promotion of the process of urbanization, will, on the one hand, improve people's living standard, and on the other hand, propel Jiangxi's rise in the central region of China, thus contributing to the construction of a moderately prosperous society. The recognition of the inherent law of development of urbanization, the comprehension of the correlation mechanism and impact effects between urbanization and economic growth, will, provide important academic value and practical significance for the rational promotion of urbanization, enhancement of coordination between urbanization and economic growth as well as the fast and good development of the national economy.The thesis makes investigation on the correlation mechanism between urbanization and economic growth by appealing to the current researches at home and abroad, with the combination of standardized analysis and empirical analysis.The thesis consists of six chapters. The first chapter is an introductory chapter. In addition to the research background, research significance and the research questions and methodology, innovation as well as the inadequacies of the thesis is stated. Also, the framework of the thesis is provided in this chapter. Besides, a retrospect of the former researches, namely, literature review, is taken on the heels of the introduction of the layout. The second chapter elaborates the definition of urbanization and the relevant theories about economic growth, namely, the classical growth theory, neoclassical growth theory and new growth theory. The third chapter describes the promotion mechanism of urbanization on economic growth from two aspects. One is the effect analysis on urbanization's promotion on economic growth; the other is the motivation analysis on urbanization's promotion on economic growth. Chapter Four in turn describes not only the effect mechanism of economic growth's promotion on urbanization, but also the theoretical models of economic growth's promotion on urbanization.The fifth chapter acts as a case study. It is carried out by analysis of the situations in Jiangxi Province. Firstly, time series data from 1980 to 2009, co-integration test, the Granger causality test, impulse response and variance decomposition method of dynamic measurement, are used to analyze the dynamic effects between urbanization and economic Growth. The results show that there is the long-term equilibrium relationship between Jiangxi's economic growth and urbanization; Urbanization's effect on economic growth was weaker than the economic growth's positive impact on urbanization; Secondly, the use of non-parametric method is adopted to set the urbanization as an endogenous variable, and lead it into the production function, the calculation of capital, labor, and the elasticity of output of urbanization flexibility in order to get a contribution rate of capital, labor, urbanization as well as technical improvement on the increasing rate of economic growth. The results show that urbanization has become a leading factor in promoting Jiangxi's economic growth. The relevant policy recommendations are put forward in the last chapter.Urbanization involves a wide range of factors because it is a very complex dynamic system. In this thesis, the investigation on the contributions made by economic growth to urbanization is only a quantitative result. In further studies, a more accurate measure of urbanization, such as multi-indicator measurement methods is suggested; the element of land, which reflects its importance to economic growth can be added to the capital stock; can consider the roles of the factors on economic growth should also be taken consideration. Besides, panel data can be added to increase the size of sample. The parametric and semi-parametric estimation methods by using the model of panel data can be used too. All these act as further research directions.