Research On The Relationship Between China's Urbanization And The Development Of The Tertiary Industry

China' s urbanization rate has increased rapidly from 33.5%in 1998 when China put forward the Urbanization Strategy,to 58.52%in 2017 and the added value of the tertiary industry has increased from 37.1%to 52.16%.Although China's urbanization and tertiary industry are developing rapidly,its development still lags behind that of other countries.China entered the middle and higher income countries in 2010,but its urbanization level is 10.12 percentage points lower than the average level of middle and higher income countries,and its tertiary industry development level is 5.97 percentage points lower.By 2017,the gap is 7.49 percentage points and 3.69 percentage points respectively.According to Petty -Clark Theorem,the urbanization process is accompanied by the improvement of the status of the tertiary industry in economic development.It is of practical significance to study the development relationship between urbanization and tertiary industry under the backgrounds of China's rapid economic development and the Industrial Upgrading Strategy becoming one of the national strategies.Related studies can be classified into 2 kinds:one is unilateral,including the research of urbanization on tertiary industry and tertiary industry on urbanization,while the latter gradually focuses on the role of producer services on urbanization;The other is the study on the interaction between urbanization and tertiary industry.This paper firstly analyzes the interaction mechanism between the tertiary industry and urbanization from a theoretical perspective,and then empirically tests the relationship between them with China as the background.In theoretical research,based on relevant theories and literature,the mechanism is analyzed from the perspective of supply and demand.Urbanization increases the demand for services and provides space for the development of tertiary industry,while tertiary industry provides services and promotes urbanization through population agglomeration effect.In addition,this paper introduces the internal production,consumption and social public services of the tertiary industry to deeply analyze the relationship between the tertiary industry and urbanization.In empirical research,based on the theoretical research above,this paper uses static panel regression model and vector autocorrelation model to test the relationship between urbanization and tertiary industry,which has been put forward in previous theoretical analysis and mechanism analysis,with China' s related data from 2005 to 2017.The empirical results are as follows.(1)The development level of urbanization and tertiary industry in China is lagging behind.However,because the tertiary industry has the strongest absorption capacity of labor and the first and second industries have negative absorption capacity,urbanization and tertiary industry have a strong correlation and rapid development.(2)The relationship between urbanization and tertiary industry in China is interacting with mutual promotion.The role of urbanization in promoting tertiary industry continues to strengthen,while the role of tertiary industry in promoting urbanization increases first and then decreases.(3)Urbanization has a long-term and stable positive effect on the three sub-industries of tertiary industry,while the promotion effect of tertiary industry on urbanization is mainly caused by productive services and social public services,and the impact of consumer services is negligible.