An Analysis On The Interaction Of Urbanization Development And Industry Structure Evolution In Chongqing, China

The urbanization in China has accelerated since the thirty five’s Opening-up Policy.The CPC Central Committee on deepening the reform decisions on major issues (2013)requires that "We will keep to the path of urbanization with Chinese characteristics;facilitate the people-centered urbanization; push forward the coordinated developmentbetween cities and towns, the Integration of industry and urban areas; and promote theurbanization and now rural construction coordinately." The New National UrbanizationPlanning (2014-2020) explains the details in target and implementation path of newurbanization. At the same time, China is having her key time in economic transition.The economy case of Detroit and Erdos have proved that only the industry structure fitinto the economy development stage, be ensured the sustainable development of cities.It is priority that to adjust the economy structure to avoid to fall into mid-income trap.Throughout the development process of developed countries in the world, it’s obviousthat services and high-tech industry will be the important$$$in the process of industrytransition. Urbanization is would be the foothold of the modern industry development,especially the services industry.First, this paper reviews relevant literatures and sum up the achievements andweakness of these researches. Second, through analyzing the historical data(1996-2012)of urbanization and industry structure in Chongqing, to get the relevance and deviationbetween urbanization and industry structure in Chongqing. On the one hand, as the levelof urbanization is lifted higher, industry structure become more reasonable. And thesetwo factors are dualized regionally. On the other hand, when we compare the Chenerystandard structural model and the NU value which measures the integration ofurbanization of Industrialization internationally, find that the urbanization level exceedsthe industrialization in Chongqing and the deviation seems to be not small. in thestructure deviation coefficient, the tertiary industry showed a good ability to absorbemployment. However, the proportion of the tertiary industry should be increased. Third,referring to econometric methods, this paper build VEC model with the urbanizationrate, the proportion of secondary industry added value, and the proportion of tertiaryindustry added value. And then, through Granger Causality Test, the result presents thaturbanization is the Granger reason of industry structure revolution, but industrystructure revolution is not the Granger reason of urbanization. According to this, thispaper deeply analyzes the influence of inner three industries caused by urbanization from the perspectives including proportion of each industry and industrial layoutadjustment.