The Research On Effects Of Urbanization On Economic Growth Of China Chen Shuang

As the power to promote the continuous development of economy,urbanization and economic growth are inextricably linked.In general,economic growth will lead to higher levels of urbanization,the advance of urbanization will promote economic growth and the realization of urban and rural development.As an important engine of economic growth,urbanization adjust the industrial structure and optimize the allocation of resources by using the economic growth factors such as dynamic capital,physical capital and human capital,thus promoting economic growth.Therefore,exploring the true level of urbanization and the influence mechanism from urbanization to China’s economic growth is of great significance to improve the level of urbanization development,promote a new round of economic and steady growth.For now,the way this literature portrayed on the urbanization Index has extend from single indicator method to comprehensive Index.This laid the foundation for portraying the real urbanization indicators.This paper follows the main line,bases on mechanism model of urbanization on economic growth,determines the urbanization index system,uses principal component analysis and MATLAB programming to evaluate the level of urbanization of 20 representative provinces that having been choose in 2013,and then compares and analysis the level of urbanization of the representative provinces form the east,central and west on this base.Then based on vector auto regression model(VAR),empirical analysis of the relationship between urbanization and economic growth in China,to achieve a effective combination of theoretical models and empirical analysis,comprehensively and systematically explore the impact of the effect of urbanization on China’s economic growth.Through research,the paper obtained the following findings :(a)Urbanization promote the economic growth mechanism and that urbanization is not a direct impact on economic growth,but by the impact of growth factors such as physical capital,labor inputs and indirect effects of industrial structure on economic growth.(b)Based on mechanism model of urbanization on Economic Growth,this paper builds a measure the level of urbanization index system include population urbanization,land urbanization,urbanization,industrialization,urbanization,social,residential urbanization five dimensions of three indicators.(c)Through quantitative analysis,this paper gets the coordination stable relationship between Chinese urbanization and economic growth and bases on the analysis of stability test,impulse response function and variance decomposition,then get a result that the improving of the level of urbanization in China can promote China’s economic growth in some extent,but the effect is not obvious.(d)Based on the theoretical foundation that urbanization effects the economic growth,construct a production function model of a town so as to analysis the influence from capital goods production factors,namely labor human capital,industrial structure.And it gets a result that these three elements all have a great relationship with economic growth,the contribution of the industrial structure is the largest and then is labor and physical capital.