The Relationship Between the Human Settlement and Economic Development in Hangzhou

Abstract

Through the establishment of specific indicators of Hangzhou’s human settlements environment and economic development from 2000 to 2016, this paper explores the contribution degree of each principal component to the indicators and the changes of the comprehensive index in 17 years. Then, in order to analyze the specific relationship between the two development, the VAR model of the two is constructed. Through co-integration analysis, Granger causality analysis and regression analysis, the deep internal relationship between Hangzhou’s human settlements environment and economic development is finally obtained. The results show that the economic development of Hangzhou is not the reason for the improvement of the environment of the human settlements, and the improvement of environment of the human settlements can promote the economic development, and there is a time lag. In view of this causality, it is suggested that attention to the environment of the human settlements should not be neglected while the economy is developing rapidly. Attention to the improvement of the human settlements environment conditions can play a long-term role in promoting economic development.