Development Of Urbanization And Tertiary Industry In Hubei Interaction

Urbanization was a very important factor for measuring the economic and socialdevelopment level of a region. Nowadays the urbanization process of our country wasin a high speed develop period, and the level of urbanization has improvedsignificantly. In economics area, the urbanization was highly related with theeconomic development, and the evolution of industrial structure was an inevitablephenomenon in economic development. Due to the experience of western developedcountries, with the improving of urbanization level, the tertiary industry wouldgradually replace the second industry as the main power of urbanization process. Atthe meantime, the urbanization process would also encourage the development of thetertiary industry, which would form a close relatively and positive interaction.The economic development level of Hubei Province was similar with thenational average level, and Hubei was in the urbanization acceleration stage at present.However, the urbanization level of Hubei was still comparatively low, the industrialstructure was also not reasonable, for the proportion of tertiary industry output wasnot high enough. Therefore, this paper would focus on the method of combiningurbanization and tertiary industry together, to analyze the development problem ofHubei province, which was very practical for both urbanization improvement andtertiary industry booming issues.At the beginning of the paper, the basic principles of urban economy andindustry economy would be introduced, and a logical relationship between theurbanization and tertiary industry would also be deduced. During the followingchapters, the research details of Hubei province would be explained carefully. Firstlythe development of urbanization and tertiary industry since reform and opening wasanalyzed separately, and later by combining these two factors together to study thedevelopment of Hubei province, found that both urbanization and tertiary industrywas in under a low level. Then with the method of co-integration test and Gray relational analysis for data between1990to2012, from the respects of urbanizationpromotion and employment absorption effect of tertiary industry, to make anempirical analyze for Hubei development.The research result was displayed from two points of views. From the view ofthe proportion of the tertiary industry adding value in the GDP, the tertiary industryplays a positive role in promoting urbanization at the present stage, but it was lessthan the effect produced by the secondary industry, for the urbanization did Grangercause to the rising rate of the tertiary industry. However, from the view ofemployment, the employment absorption capacity of tertiary industry was verysignificant, and the two factors present a two-way Granger causality. At the end of thepaper, four tips were advised for Hubei province: one was to pay more attention of theeffect did by the tertiary industry in urbanization process; and to perfect the system tomake urban elements gathered together; on the other hand, to choose an appropriatedeveloping mode for each area; and should also make adjustment for the internalstructure, to make sure the increasing of employment.