Abstract
The relationship of urbanization level and tourism is one of hot issues in the economics research. In this paper, cointegration analysis, error correction model and Granger causality estimation were used to test the relationship of China's urbanization level and tourism, based on the data from 1994 to 2009. Econometric software-Eviews 5.0 was used in calculation process. All the empirical studies were experienced several steps including unit root test on urbanization level and tourism, cointegration test, first order and second order error correction model as well as Granger causality estimation. The empirical test showed that although the short-run fluctuation exists, there is a stable equilibrium relation between China's urbanization level and domestic tourism in the long run. But, there is no stable equilibrium relation between China's urbanization level and international tourism in the long run. In addition, on the comparison of between international tourism and domestic tourism, it concluded tha t the urbanization level plays more significant role in promoting domestic tourism than international tourism do.
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