An Empirical Study On The Interactive Relationship Between Urbanization And Industrial Structure In Gansu

Urbanization and industrial structure are two important economic phenomena ineconomic and social development; they play an important part in regional economicdevelopment with hand in hand. On one hand, the optimization and upgrading ofindustrial structure enhance the capacity of the town’s development and it is also animportant driving force of modern urbanization; on the other hand, the optimizationand upgrading of industrial structure and extension of urban space are inseparablefrom its function system and many other aspects’ support of urbanization space. Theglobal financial crisis triggered by the U.S. subprime mortgage crisis caused asignificant impact on China’s exports in2007, while China was facing doublepressure--slowing economic growth and grim employment situation. In thisbackground, it is urgent to speed up economic restructuring and one of the effectivecountermeasures to deal with this crisis is to speed up industrial restructuring andpromote steady and orderly development of urbanization, which is an importantguarantee for the future economic development of Gansu.Since the Reform andOpening, Gansu urbanization has made rapid development, with the rate ofurbanization rising from14.41percent in1978to38.75percent in2012. At the sametime the industrial structure was upgrading, the proportion of three industries outputvalue in1978,"two hundred thirteen" pattern adjusted to2012’s "two thirteenhundred" pattern, the proportion of tertiary industry employment increased from19.79%in1978to39.55%in2012. However, compared to the national average rate,both the level of urbanization and industrial structures meet large gaps. On one handthe urbanization rate is below the national average with13.82%; on the other handserious high proportion of employment occurs in primary industry and imbalancehappens within the industry and heavy industry, the tertiary industry development islagging behind, which has restricted the sustained and healthy economic developmentin Gansu Province. Thus, with study on the interaction between urbanization and industrial structure of Gansu, exploring the law of this interaction can providerecommendations for the orderly development of urbanization and industrial structureadjustment, and deeply promote the further development of Gansu economy.This paper uses methods like literature reviewing, descriptive statistics andquantitative analysis to deeply study the interaction between urbanization andindustrial structures of Gansu. First, we systematically card related literature inurbanization and industrial structure; then analyze current situation, characteristics ofurbanization and the evolution and characteristics of industrial structure in Gansu bygeneral statistics. Based on this, we theoretically analyze the interaction ofurbanization development and industrial structure evolution in Gansu, which showsthat the primary industry is the basis of dynamic development of urbanization, thesecond industrial development is the core driving force of urbanization development,the tertiary industry development is the continued momentum of urbanization, buturbanization is also an important guarantee for the optimization of industrial structureupgrading;Moreover, we select the urbanization rate from1983to2012of Gansu, theproportion of three industries accounted for output and employment as indicators,using methods of correlation analysis and VAR models, from an empirical point ofview empirically analyze the interaction Gansu urbanization and industrial structure.Results show that Gansu urbanization and industrial structure do not form a virtuousinteraction theoretically. Finally, based on the whole analysis, this paper proposescorresponding countermeasures and suggestions to the urbanization industrialstructure development of Gansu.