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Research on the relationship between urbanization and economic growth in China - econometric analysis based on data from 1952 to 2013

Author(s): Xiaohong Mei

By means of cointegration test, vector error correction model(VECM), granger causality test and so on, this article has respectively tested the relations between urbanization and economic growth in China during 1952-2013. The result shows that the cointegration relationship varies from loose to tight in different sample interval. Urbanization does not play a significant role in promoting economic growth until the 21st century. Otherwise economic growth does not significantly increase urbanization level, although it promotes urbanization in short term. Entering the 21st century, the new urbanization keeps eye on “quality” rather than “quantity”.

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