Research on the Relationship Between Urbanization and the Level of Economic Development Based on Co-integration Test in Linfen City

摘要

This paper mainly uses the data of urbanization rate in urban area obtained 1990-2014 and the sequential data of per capita GDP of Linfen City in Shanxi Province. And the result shows that there exists a long-term equilibrium stage between the urbanization level and economic growth through the way of unit root test and Johansen cointegration test. And then Granger causality test has been conducted on this basis and it shows that the urbanization development greatly affects on the economic growth while the effect is not obvious in return. This conclusion maybe due to the unreasonable industrial structure in Linfen city, thus it is necessary for Linfen to optimize the industrial structure further and accelerate the development of tertiary industry.