An empirical study of urbanization effect on national income of the world with focusing China mainland

Abstract

This research on the correlation between urbanization rates and national incomes among the countries provide evidences for the effectiveness of urbanization based economic development. There are also common arguments that the Chinese government should actively promote the urbanization for economic growth. But this argument requires a more specific analysis of the policy environment in China. Because China has the potential food supply problems in the future due to population growth factor by Chinese authority policy. This is the reason why China should draw the appropriate level of urbanization. Therefore, Chinese authority should approach to the urbanization development issue very carefully. Urbanization development should be recognized with agriculture farmland conservation and high value added agricultural industry for sustainable growth in China mainland. The world's urbanization and economic development in the majority of the countries have directly proportional relationship. However, this research points that there have been relatively high urbanized countries among their national GNI of less than $ 20,000. We can find the existence of non-economic factors on the urbanization process of the country through this analysis. Furthermore other important research objective is to derive the more hopeful policy direction of Chinese development by analyzing the types of economic development of the world. In promoting urban and rural areas development, China have to take into account the balance of growth and increase of the productivity by high value-added agriculture with Chinese characteristic at the same time. Avoiding the indiscriminate urbanization, urbanization should be noted about the possibility of high value-added of the primary industry. Wealthy formation through the rural income increase is more preferred rather than factitious cities built in large scale. This way shall overcome the negative impact of food deficiency problems in the future. China's urbanization level of 70% will be the turning point of the growth strategy and China should further refine the balanced development of urban and rural development policy. This is why utility value of urbanization on economic growth means that each country could different. It should also be promoting the balanced development between urban and rural areas, including through active foreign capital investment for rural areas and the agricultural sector of the people living in rural optimized over existed metropolitan urbanization at the same time.