Study On The Relationship Between Urbanization And Economic Growth In Gansu Province

Urbanization is an important indicator for comprehensive measurement of regional economic development and an inevitable path for economic development.Economic growth is also a very important objective reflection of economic development and a manifestation of the quantity of economic development.As a concrete manifestation of the quality and quantity of regional economic development,there is a complementary and interactive relationship between urbanization and economic growth.As a typical representative of underdeveloped areas in western China,Gansu Province has made remarkable achievements in the level of urbanization and economic growth,but it still lags behind the national average level.It is of great significance to study the relationship between urbanization and economic growth in Gansu Province for regional economic development.Based on a large number of domestic and foreign research results,this paper constructs a comprehensive evaluation index of urbanization on the basis of factor analysis and principal component analysis,which is used as the reflection index of urbanization to study the relationship of GDPPC as the embodiment of economic growth.Based on the 1985-2016 statistic data,the paper first qualitatively describes the positive correlation between economic growth and urbanization in Gansu Province according to the historical trajectory,and then divides the sample into two regions with the implementation of the China Western Development strategy as the time node.Using Co-integration test based on VECM model and Granger causality test based on VAR,the paper empirically analyzes the causality between urbanization and economic growth in Gansu province.The results show that the long-term relationship between the different intervals is not consistent,in the interval 1985-2001,in the reform and opening-up to the Western development of 20,urbanization is the Granger cause of economic growth,but economic growth is not a town of Granger,The impact of economic growth on its own impact and the positive change of urbanization is in response to positive change;in the 2000-2016 interval,economic growth and urbanization are the Granger factors,which affect each other,and economic growth is more stimulating to urbanization,and economic growth has positive effect on urbanization.And the effect is stronger than the reverse effect of urbanization on economic growth,but urbanization gradually weakened with its own changes.In order to play a better role in the accelerated stage of the China Western Development and the "The Belt and Road" strategy,priority should be given to enhancing consumption motivation and optimizing human capital structure and developing the regional economy,promoting urbanization with economic growth,and jointly promoting healthy and stable economic development.