A Study On The Relationship Between Urbanization And The Development Of The Tertiary Industry In Shaanxi Province

Urbanization is one of the important criteria necessary for us to evaluate the economics of a country or an area. In recent years, research into urbanization of our country has been the hot issue in a variety of fields, such as sociology, economy, and geography. And also the method we can get to improve the level of urbanization. It had been improved in developed countries that the direct reason of urbanization is industrialization; only in certain stage of industrialization can tertiary industry become the only main leading industry in urbanization. Furthermore, the development of tertiary industry is also influenced by urbanization in return. For Shaanxi province, the urbanization developing is in acceleration at the moment. The research into the interaction of tertiary industry and urbanization means a lot to accelerating urbanization process and optimizing the tertiary industry’s inner structure.This paper contains output value of tertiary industry as a proportion in GDP, the proportion of employment of tertiary industry and urbanization rate from 1990 to 2013 in Shaanxi. Methods used in the paper are included as Covariance Analysis, ADF test, co-integration test, Granger test. The result indicates that in the long-term, output value of tertiary industry as a proportion in GDP and the proportion of employment of tertiary industry have co-integration relation with urbanization rate. And output value of tertiary industry as a proportion in GDP has more influence on urbanization rate than the proportion of employment of tertiary industry. What’s more, output value of tertiary industry as a proportion in GDP and the proportion of employment of tertiary industry are the Granger Cause of urbanization, but also vice versa.In the end, given the existed problems between urbanization, tertiary industry with measurements, I put forward several suggestions about optimizing inner structure of tertiary industry and accelerating urbanization so that both can develop fast and well.