Empirical analysis to the relationship between urbanization and economic growth in China

This article incorporates distribution-lag model into simultaneous equations to study the nexus of urbanization and economic growth by the use of panel data from Chinese provinces during the period 1987-2008.The findings include that the mutual promoter relations between urbanization and economic growth are existent in the short term;that the cumulative effect of urbanization on economic growth is significantly negative,and vice versa;and that Chinese economic growth and urbanization have not formed a virtuous circle in the long term.