Research On Interactive Relationship Between China's Basic Public Service Equalization Level And Urbanization

Sustained economic growth is also the process of industrialization and urbanization for developing countries. Unequal distribution of resources is the originally direct impetus of Urbanization. The more economy growth and resource agglomeration, the more urbanization rate increasingly. But with the development of regional economy and the urbanization, the difference of income distribution changes by Kuznets inverted U curve move from the left side to the middle and gradually widening income gap. Social contradictions caused by the widening gap between the income distributions will be concentrated outbreak at the same time. Social instability is likely to inhibit the further advance of urbanization. Therefore, in order to avoid the social instability which caused by the expansion of the income distribution gap, the government should consider the balance of economic development.After 60 years of economic development, China's urbanization level has been improved, but its extensive and unsustainable patterns also being criticized by people. Focus on pursuit of growth and ignoring the social fair lead to the income gap widened gradually. In order to overcome its disadvantages, on the 18 th of the National People's Congress of the party when held on November 8, 2012 put forward the concept of "new pattern of urbanization”. New pattern means "people-oriented, intensive and efficient, green and intelligent, harmonious development". The goal is balanced development. Equal basic public services provided is important to new pattern urbanization, it's also a key to balanced development. So consider the interactive relationship between basic public service equalization and urbanization has a very important research value.The relevant theoretical knowledge about development economics, city and regional economics, welfare economic and public finance are applied to the research of the dissertation..On the basis of the process of rapid urbanization in China from 2000 to 2012, the paper discusses the interactive relationship between basic public service equalization and urbanization, and then gets relevant theoretical assumptions. The relationship has been analyzed empirically by setting up the PVAR model. The results show that the improvement of urbanization level can lead to the reduction of equalization level about interlocal basic public services, and the change of basic public service equalization level has a weak correlation on the influence of urbanization rate. It does not coincide with the analysis through economic theory which gets a mutual promoting benign interaction relationship between urbanization and basic public service equalization. The fundamental reasons of this phenomenon is the original logic of urbanization is not suitable for the present urbanization development Accelerating the transformation development ideas and to speed up a service-oriented government function transformation, establishing reasonable relations between authorities power and financial power by optimizing the tax system and standardizing the transfer payment system are the effective ways to realize the benign interaction between basic public service equalization and urbanization.