Empirical Research on the Dynamic Relationship between Urbanization and Services in China

The paper empirically analyzes the dynamic relationship between urbanization and services and also its influential factors in China during 1978-2011.The results show: the level of urbanization is in highly positive correlation with service economy in short run and long run;the urbanization process promotes service economy and vice versa;the per capital income, employment structure, degree of industrialization and marketization degree affect the promotional function of urbanization on service economy in short-term.The policy suggestions are as follows: the coordinated development of the urbanization process and service development;the common development of new-style industrialization and service economy;the solving of the problems of urban-oriented services and the imbalance of service supply and demand;and the relaxing service industries' control and introducing the market competition mechanism.