Study On The Interaction Mechanism And Empirical Research Between Service Industry And Urbanization

It has been one of the focuses of economic development and industrial restructuring and upgrading to accelerate the pace of construction of new urbanization and vigorously develop the service industry,especially the modern service industry in China.The 12 th Five-Year Plan proposed that:It is our task to create a great environment to promote the development of service industry and promote producer services and life services,while promoting coordinated regional development and the healthy development of urbanization.Therefore,how to advance the development of urbanization and service industry is our emphasis in the last year of 12 th Five-Year Plan.According to the general international experience,urbanization and the development of service industry are mutually reinforcing.Premier Li Keqiang has pointed that the process of urbanization and prosperity in the service sector combined,throughout policy guidance and mechanism innovation to give full play to the service industry and urbanization development potential.This paper,from the perspective of city,studied the interact relationship between urbanization and service industry,in order to the better way to promote development of them in harmony.Firstly,this article introduced the background,the significances and ideas of research,and summarizes the relevant researches,which gave a certain inspiration to this paper.Secondly,this paper analyzed the development and present situations of urbanization and service industry in China,and compared with some international countries’ real cases,in order to determine whether the present development of urbanization and service industry in China was in accordance with the general international experiences or not.Then,from the perspective of urban economics,it analyzed the interaction between service industry and urbanization,including the aggregation effect,diffusion effect and the external economic effects,which was the basis for empirical research.Based on the theoretical analysis,this paper collected pool data of 254 cities in China to do empirical researches.Through Granger causality test to verify whether there is a causal relationship between them.The second step is to study the specific form of the interaction between service industries and urbanization based on the difference of city’s population by establishing panel data model of simultaneous equations.Thirdly,through the threshold regression model to analyze the impact ofurbanization and the development of services at different stages of the scale effect size.At last,according to the phenomenons of the development of service industry and urbanization and the empirical results,we put forward policy recommendations to develop both of them in coordination,such as speeding up institutional innovation and improving the quality of population urbanization,upgrading the system of service industry with urban,accelerating the development of urbanization driven by modern service industry and so on.Generally speaking,when economy develops to a certain scale,service industry will replace industry to stimulate the development of urbanization.This is similar to our theoretical analysis and studies.At this stage,how to strengthen the correlation between urbanization and service industry,accelerate the pace of them,and to promote the fast and good development of the national economy,and get enlightenment in this paper.