Abstract:
The paper applies the panel smooth transition regression (PSTR) model to examine the nonlinear relationship between urbanization and economic growth in China based on the panel data of 30 provinces, autonomous regions and municipalities during the year of 1990 to 2012. It selects three threshold variables, which are lagged urbanization rate, industrial structure and energy consumption, and uses instrumental variable approach to estimate the PSTR model. The main empirical results are as follows: Three nonlinear models show a positive correlation between urbanization and economic growth except for the low level of energy consumption per capita; The elasticity of urbanization on economic growth drops with the development of urbanization, whereas it rises with the increase of the tertiary industry proportion and energy consumption per capita; The elasticity presents an increasing trend with the lapse of time, and starting to decline after the year of 2000. Finally, the paper analyzes the discrepancies of elastic coefficients in different regions.
Key words:
urbanization; economic growth; PSTR model
Fund：
The National Social Science Fund of China (13&ZD026)； National Science and technology support program (2012BAC20B08)； National Natural Science Foundation of China (71073009)；
Reference:
He, X., Zhao, J., & Pan, H. (2014). An Analysis on the Nonlinear Relationship between Urbanization and Economic Growth in China —Based on the PSTR Model. East China Economic Management, 28(12), pp.45-49. （《我国城镇化与经济增长的非线性关系分析—基于PSTR模型》）
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