Study on the Relationship between Urbanization and Economic Development of Anhui Province

Urbanization gradually becomes the mainspring to promote the development of economy. This paper has conducted an empirical research on the relationship between urbanization and economic development in Anhui province by establishing a mathematical model and VAR model based on the data of urbanization rate and per-capita GDP 1978-2012. Results indicate that both have double logarithmic relationship on number level.At the same time,economic development has obvious contribution to the economic development,but urbanization is relatively limited. According to the new economic geography,Anhui province pays too much attention to the development of big cities in Anhui province and neglects small towns,causing urbanization quality lagging behind urbanization level. Anhui province needs to promote coordinate development between urbanization and economic development by adjusting the urbanization development power,focusing on developing counties,transformating government function.