The Impact of Urbanization and Population Policy on China’s Economy

Abstract

Urbanization and Population policies are critical influential factors of economic growth, the quantitative and qualitative methods are applied to analyze the relationship between urbanization, population policy from 1950 to the present. The analysis of the correlations and patterns of urbanization processes and economic growth, allows to make prediction of future trends. China’s economy and urbanization are mutually beneficial. In the process of urbanization, a large quantity of labor has been transferred the secondary and tertiary industries, which significantly improved production efficiency. The population transfers from rural areas to small and medium-sized cities, and from small and mediumsized cities to large cities. The cities in the certain areas form a huge urban agglomeration. This brings a certain imbalanced regional development. People move from the western region to the eastern region because the economy in the eastern coastal area is more developed, with more employment opportunities, infrastructure, and medical care, which leads to imbalanced regional development. Based on the model prediction, the process of urbanization will reach its peak in 2040, and the urbanization rate will be more than 80 percent.