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Empirical Research on the Relationship between Urbanization and The Development of Tertiary Industry in China

In: Proceedings of the 2024 2nd International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2024)

Author

Listed:
  • Boyan Zhang

    (Hebei University of Technology, Faculty of Science)

Abstract

To foster the advancement of China’s urbanization and the tertiary industry, and provide scientific guides for government decision-making, the paper selects China’s time-series data from 1978 to 2019 to empirically analyze the interaction between the urbanization rate and the contribution rate of the tertiary industry, between that and the employment proportion of the tertiary industry through the cointegration relationship test and the Granger causality test. The results show that (1) they have a stable equilibrium relationship over the long term; (2) urbanization is the Granger cause of the contribution rate of the tertiary industry and the employment proportion of the tertiary industry. To be specific, the impact of urbanization on the contribution rate of the tertiary industry can be immediately revealed, while the effect on the employment of the tertiary industry is lagging behind; (3) the contribution rate of the tertiary industry and the employment of the tertiary industry is not the Granger cause of the urbanization rate, indicating that during the growth of urbanization, the effect of the tertiary industry is not prominent.

Suggested Citation

  • Boyan Zhang, 2025. "Empirical Research on the Relationship between Urbanization and The Development of Tertiary Industry in China," Advances in Economics, Business and Management Research, in: Peng Dou & Keying Zhang (ed.), Proceedings of the 2024 2nd International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2024), pages 12-27, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-706-9_3
    DOI: 10.2991/978-94-6463-706-9_3
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