A Study of Interactive Relationship between the Service Industry Agglomeration and Urbanization:1997—2009

This paper uses simultaneous equation of panel data to analyze the interactive relationship between the service industry agglomeration and urbanization based on China's Provincial Panel Data by 3SLS method.The results show that there is a positive interaction between the service industry agglomeration and urbanization,but the promoting effect of the service industry agglomeration to urbanization is more significant than the positive function of urbanization to the service industry agglomeration;the home market effect,the open economy affect the China's service industry agglomeration significantly;the level of urbanization lags behind economic development;industrialization still has important function on urbanization.