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《Journal of Finance and Economics》 2006-09
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An Analysis of Dynamic Econometric Relationship between Urbanization and Economic Growth in China

LI Jin-chang,CHENG Kai-ming(Zhejiang Gongshang University,Hangzhou 310035,China)  
This study explores the relationship between Chinese urbanization and economic growth.To this end,some econometric methods such as cointegration,Granger causality tests,IRF and variance decomposition are used to analyze the data from 1978 to 2004.The results show that economic growth is the Granger causality to urbanization in a long term.Economic growth makes great impact on urbanization,but urbanization makes little impact on economic growth.The change of urbanization is intensified by GDP per capital,but weakened by itself.The change of GDP per capital is intensified by itself,but weakened by urbanization.In the end,recommendations are discussed for governments to facilitate urbanization and economic growth.
【CateGory Index】: F299.2;F224
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