Research On Urbanization And Economic Growth In Turkmenistan

Urbanizationserve as the main source in the growth and development of economies around the world.Urbanization is an artifact of social,economic and demographic processes that focus on population in large towns and cities,changes economic structure like anincrease in industrialization,modifies social lifestyle and relations.This study aims at examining the relationship between urbanization and economic growth in the context of Turkmenistan,for the period of 2000 to 2015.Testing the relationship between economic growth and urbanization,a quantitative analysis of GDP per capita was used to capture economic growth while the percentage of total population was used to measure urbanization.An empirical analysis was done using the time series analysis method where the co-integration test,the Engel-Granger method was applied between the two variables.The unit root test was done to determine the stationarity in the two variables and whether the two variables had a long run association.A time series analysis confirms that the data are stationery and cointegrated using the Engels and Granger test.Testing the magnitude of deviation between the long-term equilibrium relationship and the speed of adjustment between the two variables,the error-correction model was used.Results from these test confirms that there exist a bi-lateral causality between urbanization and economic growth.The findings also revealed a positive and significant relationship between urbanization and economic growth for the period of the study.Based on these results,the paper made several recommendation including that the Turkmenistan government should give urbanization and the service sector a great deal of attention by supporting shared development between them and gather sufficient income that fosters economic development.