China Urbanization Lags Behind The Industrialized Development Of System Analysis

Mutual promotion and coordinated development between industrilization and urbanization is the only way to implement modernization for all countries in the world, is the important driving force of economic development. However, in promoting the industrialization process, developing countries often didn't take their own specific initial conditions into account, failed to deal with the relationship between industrialization and urbanization in the development stage, development mode, development goals and development pace, resulted in seriously out of line between the practice of industrialization and urbanization. China is a developing country, the uncoordinated development has become a major obstacle to China's economic development. So for China, the research is very necessary.Paper adopts the method of combining normative analysis and empirical analysis, qualitative and quantitative analysis, bases on new institutional economics perspective, points out that the main reasons for the formation of deviation is the unreasonable design of the system in the development of China's industrialization and urbanization. This article first determine the measure of industrialization and urbanization indicators system:a population-urbanization as a measure of urbanization, industrialization-industrial employment as a measure of the proportion of indicators. Then calculated the deviation according to the two indicators from reformation, analysed in theoretical:the country's dominant system, urban-rural dual system and the market system is the cause of industrialization and urbanization bias from China's reform and opening up stage. Followed by application of empirical testing econometric models to arrive two corresponding conclusions:First, institutional change is the Granger causes of deviation of urbanization and industrialization; Second, institutional change and urbanization, and industrialization has a long-term stability of the linear,and institutional change has a significant impact on the deviation of urbanization and industrialization. Finally, based on the conclusions and put forward feasible policy recommendations.There are two innovations of this article:First, for the research point of view, it based on the perspective of new institutional economics to study China's current problems; Second, for the selection of indicators in the industrialized,it broke the traditional approach (ie, with the industrialized rate-the added value of industrial output, measured by the proportion of GDP, industrialization), and used the proportion of industrial employment to measure China's level of industrialization.