Study On The Dynamic Relationship Between The Urbanization Process And Construction Industry Development In Anhui Province Based On The VSR Model

While promoting the social progress,economic growth and the improvement of the residents' living standards,the progress of urbanization continues to accelerate in Anhui Province,which leads to the prosperity and development of the construction industry.The construction industry,as an important pillar industry in the economic development of Anhui,develops rapidly and has an important impact on the urbanization.Therefore,there is need to research on the dynamic relationship between the advancement of urbanization and the co nstruction industry in Anhui Province,which is essential to promote the coordinated development of urbanization and the construction industry.Firstly,this article analyzes the present situation and its questions of urbanization and the construction industry in Anhui Province.Secondly,based on the VAR model and the statistical data of the urbanization rate,GDP per capita and the added value of construction industry of Anhui province from 1992 to 2015,the variables are tested by the stability test and co-integration test,as well as impulse response function and variance decomposition analysis,and this paper makes an empirical study on the long-term equilibrium relationship between the urbanization process and the development of the construction industry in Anhui Province.According to the empirical analysis,there is a long-term stable equilibrium relationship between the urbanization rate,per capita GDP and the value-added of construction industry in Anhui province.The urbanization rate and per capita GDP have a positive effect on the added value of construction industry,while the value-added of construction industry also contributes to the changes in the urbanization rate and per capita GDP.The urbanization rate and per capita GDP contribute to the variance decomposition of the added value of the construction industry,while the added value of the construction industry contributes much to the variance decomposition of urbanization rate and per capita GDP.The theoretical and empirical research shows that the urbanization and the construction industry of Anhui Province have mutual promotion and interdependence.Finally,combining the uncoordinated factors in the development of urbanization and construction in Anhui Province,this paper puts forward some policy suggestions to promote the coordinated development of the urbanization and construction industry inAnhui Province.