Study Of Urbanization In Zhejiang Province And Economic Growth

As a space container for economic growth,city has integrated elements and market for growth.Urbanization has become another key engine to economic growth.Thus studying on the relations between urbanization and economic growth has an important realistic meaning.As a province of large economic aggregate,Zhejiang has achieved a wonderful result on economic development.Meanwhile,the urbanization rate of Zhejiang province has increased to a higher level.This study using the method of Econometrics,applying with the data of economic growth and urbanization from Zhejiang province,firstly estimated the comprehensive scores of urbanization of the cities in Zhejiang province and analyzed the reasons behind the difference.Secondly, using logarithmic model and the model of expanded Production Function,via the analysis method of regression,panel data,positively analyzed two inter-action aspects of urbanization and economic growth.Finally the study gives out the conclusion and policy advice.The study contains six chapters.The first chapter is exordium,given out the background and the meaning of this study.It introduced the actuality of studying the relations between urbanization and economic growth.In detail,this chapter also introduced the analysis method,internal logical framework and innovations of this study.The second chapter has summarized relevant theories of urbanization and economic growth in China and abroad.Defined the conception of urbanization and explained main models for economic growth.This chapter is the theoretic basis of the positive analysis thereafter.The third chapter statistically described the historic progress of urbanization and economic growth achievement of Zhejiang province.The urbanization of Zhejiang province has experienced two decades,pre- and post- China's opening up as while as the economic growth trend.Zhejiang has been developed from a province of middle-size economic aggregate to one of top size provinces in China with almost the most fast growth rate.In the forth chapter,the study has established a comprehensive score system to estimate the urbanization level via factor analysis method.With 30 observations variable adopted in the system,it extracted four main factors to explain urbanization.Calculating the scores on each factor of each city,it comes out the comprehensive score of urbanization for each city.The result shows that the urbanization level of Zhejiang has divided into three catalogs,Hangzhou and Ningbo are in the top level,Wenzhou and other 6 cities are in the middle-level and Quzhou,Jinhua and Zhoushan are in the bottom level.The study also gives out the reasons behind the difference.The fifth chapter is the most important chapter.It positively analyzed the relations between urbanization and economic growth,using logarithmic model and the model of expanded Production Function,analyzed the quantificational relations of the inter-actions between urbanization and economic growth.The study collected the panel data of 11 cities in Zhejiang Province from 1994-2007,using methods of regression,panel data analysis,Hausman test,unit roots test and integration test for panel data.On the aspect of economic growth affecting urbanization,it works out the following regression equations:urban=-0.459492+0.071119ln(gdpp) Time serials analysisurban=-1.621475+0.184823ln(gdpp) Year 2006urban=-0.978491+0.126010ln(gdpp) Year 2005urban=-0.475580+0.073849Ln(gdpp) Panel data(-10.82198)(17.18025)On the aspect that urbanization affect economic growth,the regression equation is:ln GDP_i,t=13.70304 + 0.7508691ln Urban_i,t +0.456849ln Labor_i,t+0.234533lnCapital_i,tThe result shows that economic growth has contributed to urbanization level,and on the other hand,the increase of urbanization rate pushes economic growth,this kind of inter-action are obviously according to the analysis and the relations has a long-term integration.The sixth chapter is the last chapter of the study,it gives out the conclusion,that the economic growth affected the urbanization and urbanization also pushes economic growth,and the quantificational relations are different to each city.Finally,it gives out the policies to push the urbanization process.