The principle of urbanization promoting the China's economic growth and it's empirical research
Jing Huirong
Abstract
Jing Huirong
Abstract
This paper uses the data of the urban and rural populations in China Statistical Yearbook to reveal the status of China's economic structure. This article from the perspective of affecting economic output production, builds the production function model of urbanization development which promotes economic growth, increases urbanization development elements in the Cobb-Douglas production function, modifies the production function which contains the technical progress, Further, selects the section data of China's 31 provinces, autonomous regions and municipalities directly under the Central Government in 2011, uses the Eviews 6.0 software, changes the production function model into the econometric model to empirical test theoretical model of the urbanization development to promote economic growth and it's related the theoretical conclusions. At the significance level of 1%, the urbanization rate increasing 1%, the output GDP increasing 0.66 percent, while the output elasticity of capital and labor are 0.71 and 0.37 respectively.
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This paper uses the data of the urban and rural populations in China Statistical Yearbook to reveal the status of China's economic structure. This article from the perspective of affecting economic output production, builds the production function model of urbanization development which promotes economic growth, increases urbanization development elements in the Cobb-Douglas production function, modifies the production function which contains the technical progress, Further, selects the section data of China's 31 provinces, autonomous regions and municipalities directly under the Central Government in 2011, uses the Eviews 6.0 software, changes the production function model into the econometric model to empirical test theoretical model of the urbanization development to promote economic growth and it's related the theoretical conclusions. At the significance level of 1%, the urbanization rate increasing 1%, the output GDP increasing 0.66 percent, while the output elasticity of capital and labor are 0.71 and 0.37 respectively.
Key concepts: Urbanization, Output elasticity, Economics, Cobb–Douglas production function, China, Production (economics), Production function, Econometric model