Contribution Measure Research And Dynamic Effect Analysis Of Economic Growth Due To Urbanization Development In China

Since reforming and opening, China acquires world-shakingachievement, makes further progress in economic growth, social progress,urbanization development and so on. China undergoes the course ofsociety transformation from agriculture to industry, and labor forcetransformation from countryside to urban areas. From 1978 to 2004, theurbanization level rose from 17.92 percent to 41.76 percent, increased0.88 percent per year, and town population raised from 172,450,000 to542,830,000, increased 13,720,000 every year in average. There is nodoubt that such large-scale population transformation would producetremendous and far-reaching influence on economic growth. Theurbanization development is a quite complex and enormous socialeconomical dynamic system, as the development of economy, theurbanization development load in China changed from "control big cities strictly, develop small-middle cities reasonably" to "develop big middlesmall cities and small town with harmony". It has been recognizedcongruously by the academe that the urbanization development wouldaccelerate the economic growth in China. Nevertheless, the problem isstill in dire need of solving, that is, how to measure the effect andinfluence of urbanization development.This paper tries to do some research from this point of view. We applymodern economic measure instrument, to explain the effect and influenceof urbanization to economic growth in China, as well as the validity ofurbanization development road changeover by data, which aiming atproviding academic reference for relative administrant department.On the basis of theoretic analysis of the development of urbanization,this paper via introducing urbanization to production function model, tryto reflect the effect of urbanization as complete as possible. As empiricalresearch result show: The development road of small towns is valid early,mostly embodied in high elasticity and high contribution. After a periodof development, however, the development of small towns becamerestricted, the cost of urbanization increased, mostly embodied in lowerelasticity and lower contribution, due to the finite scale-effect, excessiveutilizing nature sources that is unable regeneration, such as land source,and the rising of price in labor force. Along with the development of bigand middle cities after 1999, the city-scale was exalted; the external-nature of city is embodied, mostly embodied in high elasticityand high contribution. Which reflect that, the changeover of urbanizationdevelopment road was in time and valid.At last, this paper adopts dynamic effect analysis technology, toanalysis the intrinsic connection and information transmitting mechanismamong economic growth, capital, labor force, and urbanization. Theresults show that: there is close structure dependence connection amongeconomic growth, capital, labor force, and urbanization, and theeconomic growth highly lies on the development of urbanization. Hence,the urbanization should be treated as endogenous variable for the wholeeconomic growth system in China.