On Interrationship between Urbanization and Demestic Demand
Abstract:The development process of industrialization around the world shows that there are various association characteristics between urbanization and industrialization at different development stages: there is S-shaped relationship between nonagricultural labor income and the urbanization level. At present, rapid urbanization of China is not due to catch-up effects of lagging urbanization, but the inherent requirement of the industrialization at the specific stage. With the development of urbanization and income growth of migrant rural labor, domestic market will grow accordingly. Therefore, during the process of realizing the urbanization with Chinese characteristics, the government needs to change direction of policy and financial input mechanism, relax restrictions on urban household registration, and achieve the change of career, status and income of migrant rural labor simultaneously, which will expand domestic demand and promote economic sustainable growth.
Keywords: urbanization; investment and consumption; Relevance