Study Of The Relation Between Urbanization And Economic Growth In Yunnan Province

Since the new China was founded, China’s economy began to recover, with the economic policies of reform and opening up in 1978, China’s economy also began to increase with a strong momentum, jumped into the third largest economy in the world. At the same time of vigorously promoting economic growth, changing the mode of economic growth and the improvement of people’s life are also on the agenda. Urbanization, as an important engine to promote the progress of human society and to promote the optimization of industrial structure,can improve the quality of life of residents. It is also very important for the central government,and to promote the development of urbanization is an important strategic goal of China’s economic and social. In The 18th National Congress of the Communist Party of China, the report made promoting urbanization development as the goal of development of China’s economy and society, and pointed out that urbanization has very important strategic significance on the transformation of China’s economic structure and industrial structure upgrading.With the central government attaches great importance to the urbanization, the local government began to vigorously promote the province’s urbanization. Under the background of the western development strategy, ASEAN Free Trade Area, the special geographical advantages and advantages of the natural environment in Yunnan Province, causing the central government attaches great importance. The Yunnan construction to the opening of the southwest bridgehead, and vigorously promote the urbanization of Yunnan Province has become one of the focal points of work of our party. But for a long time, the economic growth rate of Yunnan province is relatively slow, the province’s economic development level is not enough, the process of urbanization also due to some factors such as topography, culture and other aspects,has a slow progress. Under this background, this paper analyzes the relationship between urbanization and economic growth in Yunnan Province, which is of great significance to the development of economy.Firstly the interaction mechanism of urbanization and economic growth were theoretical analysis, then compare urban population proportion, and the rate of industrialization and urban built-up area and other aspects and think of the present situation of economic growth. For the further analysis of the relationship between Yunnan Province urbanization and economic growth, use the Granger causality test, the enger Granger co integration test and error correction model, empirical analysis to analize, combined with the panel data of state city, verified the regional differences. The study found that there is a long-term equilibrium between urbanization and economic growth in Yunnan Province, Yunnan Province economic growth is the Granger cause of urbanization, and urbanization is not economic growth Granger causes, because Yunnan Province urbanization is still lagging behind in the mode of development period. Panel data test results show that in the state of the city’s Yunnan Province, economic growth has a positive effect on the level of urbanization, but due to the different states and cities in the province’s economic growth and urbanization development level, natural resources and environment and location. Therefore, economic growth to urbanization is the strength of the differences. Finally, on the basis of the theoretical analysis and empirical test, the relevant policy recommendations are put forward according to the relationship between urbanization and economic growth in Yunnan province.