A study of dynamic econometric relationship between urbanization and service industries growth in china
Abstract: The paper is going
to analyze that there are dynamic quantitative relationships between Chinese
urbanization and service industry.
Design/methodology/approach: According to the index number of value-added
of service industry and town population/ total population ratio during the year
of 1978 to 2012 in China, the paper is designed with models which are analyzed
by ADF test, co-integration test, error correction model and Granger causality
test, finally get the conclusion.
Findings: The paper achieves the two conclusions, one is that
urbanization is the important power of service industry’s growth; the other is
that the level of urbanization improves the level of service industry recently.
Originality/value: Chinese urbanization and service industry have close
relationship, and they also have dynamic changes. The paper studies their
dynamic changes through collecting a lot of data from the year 1978 to 2010 and
developing models to make quantitative analysis, for example, tables and
quotations in the paper are the best proof. At last, the paper also puts
forward some suggestions after get the conclusion that Chinese urbanization is
the motive power to the growth of service industry.
Keywords: urbanization,
service industry, co-integration test, error correction model, Granger
causality test
Author: Congjun Cheng
Journal Code: jptindustrigg130051
