A Study Of Relationship Between Urbanization And Economic Growth In Zhejiang Province

Urbanization has reflected a country or region's comprehensive strength andinternational competitiveness. Zhejiang province is currently in the critical period ofdeepening reform, promoting the economics of restructuring and upgrading, andurbanization will become the important engine of economic growth. In order tooptimize the power structure of economic growth and promote sound and rapideconomic development of Zhejiang province, it needs to enhance the coordination ofurbanization and economic growth. So, it is very important to grasp the intrinsicrelationship between urbanization and economic growth in theory and practice.Based on the former research in urbanization and economic growth, this master'sthesis systematically analyzes the intrinsic relationship between urbanization andeconomic growth. Firstly, normative analysis method is used to analyze theinteraction mechanism between urbanization and economic growth, and further, theinteractive theoretical framework is put forward. Secondly, from the quantitative pointof view, take Zhejiang province as an example, this master's thesis makes anempirical research which studies the relationship between urbanization and economicgrowth by using the dynamic econometric analysis method and the path analysismethod. The results of dynamic econometric analysis show that it appears mutuallybeneficial relationship on the whole between urbanization and economic growth. But,there is certain lag period when urbanization promotes economic growth. The resultsof path analysis show that the direct path coefficient is0.267, and urbanizationthrough investment, consumption, intellectual capital on economic growth of indirectpath coefficients are0.195,0.159, and0.350. The accumulation of knowledge andspillover play a huge role in the process of urbanization to promote economic growth.The effect of urbanization promoting economic growth through consumption is lessthan through investment. Once more, this master's thesis uses theil index to measurethe income gap between urban and rural areas of Zhejiang province. Then, thismaster's thesis analyzes how urbanization of Zhejiang province affect the urban-rural income gap and how the urban-rural income gap affect economic growth. The resultsof co-integration test show that the urbanization expands statistical urban-ruralincome gap, and the urban-rural income gap is not conducive to economic growth.Finally, summarizes the main research conclusion. To promote the coordinateddevelopment between urbanization and economic growth, we can improve the qualityof economic growth, make the development of rational urban development strategies,to develop knowledge-based economy, accelerate the investment-led transition to aconsumer-led and narrow the income gap between urban and rural areas and otheraspects.This master's thesis has a innovation comparing with other research. Based on theformer research, through theoretical analysis, the interactive theoretical frameworkbetween urbanization and economic growth is put forward. Introduction of pathanalysis method, the city and various intermediaries are included in a unifiedmathematical model. From a quantitative point of view, the direct effect and indirecteffect on urbanization to economic growth are analyzed.