Study On The Relationship Between Urbanization And Economic Development In Liaoning Province

In order to select indexes from multiple angles, this study firstly introduces the theoretical connotation of urbanization and economic development. Thus coupling index system of urbanization and economic development can be established. Entropy weight method is used to determine the weight of each index. The complex development index of urbanization and economic development should be calculated separately. Cluster analysis is used to classify 14 cities in Liaoning province about the level of urbanization and economic development. From 2005 to 2014, coupling coordination degree of urbanization and economic development can be calculated by coupling coordination model. According to the level of coupling coordination classification, the analysis and evaluation of the urbanization's level,economic development's level and the coupling coordination's relationship between 14 cities are carried out separately. The overall situation and trend on these three aspects of 14 cities can be concluded. Then the grey forecasting model is used to forecast the coupling coordination degree of 14 cities in 2015.Dynamic econometric analysis of Liaoning province is conducted by using single index method. According to the outcomes of entropy weight method, proportion of non-agricultural employees and GDP per capita are used to represent urbanization and economic development separately. The econometric methods such as cointegration test,error correction model, granger causality test and impulse response analysis are used to conduct study on the relationship between urbanization and economic development in Liaoning province. The findings show that there is a long-term equilibrium relationship between the urbanization and economic development in Liaoning province. The impact of economic development on urbanization can be reflected in the short term, and the most obvious lag period is about two or three years. However, the impact of urbanization on economic development can not be reflected in the short term, and the effect should be reflected after a period of more than ten years.