[Abstract] Based on the connotation of industrialization and urbanization, this paper discusses the internal mechanism and external performance of the coordinated development of industrialization and urbanization, which is of great theoretical significance for understanding and promoting the coordinated development of industrialization and urbanization in China.

[Keywords:] coordinated development of industrialization and urbanization

First, the meaning of industrialization and urbanization

In the process of economic development of a country or region, industrialization and urbanization reflect the changes of industrial structure and spatial structure respectively. Generally speaking, industrialization means the transformation process of industry and employment structure, that is, the industrial structure dominated by agriculture is transformed to the industrial structure dominated by industry, and the labor force in the agricultural sector is transferred to the non-agricultural sector. Urbanization refers to the concentration process of population, industry, capital and market in a country or region. Industrialization and urbanization are not parallel development, but closely linked and influenced each other. Whether industrialization and urbanization can achieve coordinated development will affect the sustainable development of the whole economy.

Second, the internal mechanism of coordinated development of industrialization and urbanization

The coordinated development of industrialization and urbanization depends on their interactive development, that is, industrialization and urbanization promote each other and develop together. Theoretically speaking, industrialization is the driving force of urbanization, and urbanization in turn promotes the development of industrialization.

The theoretical basis of the interactive development of industrialization and urbanization is the existence of specialized economy and agglomeration economy. Specialized economy refers to the increase of economic output caused by the improvement of specialization level due to division of labor, while agglomeration economy is a systematic force to improve efficiency and reduce costs through the acquisition of economies of scale and scope. The improvement of the level of division of labor has produced a specialized economy, which has led to an increase in the types of goods and also increased the transaction costs between products. Transaction costs can be divided into the following three categories: first, transportation costs are related to the number of products traded; The second is the fixed transaction fee, that is, the fixed bargaining fee required to determine the price in each transaction; Third, the narrow sense of endogenous cost refers to people who, in order to get more benefits from division of labor, do not hesitate to reduce others' benefits from division of labor, resulting in the benefits of division of labor not being fully utilized or deviating from Pareto optimal resource allocation distortion. And agglomeration economy can reduce these three transaction costs. Spatial agglomeration of economic activities can reduce transportation transaction costs; The improvement of transaction technology or infrastructure can reduce the fixed transaction cost; Population agglomeration can reduce endogenous transaction costs by shortening the distance between people.

The interaction between industrialization and urbanization can be simply summarized as follows: division of labor and specialization improve the level of productivity, and the improvement of productivity leads to the transformation of industrial structure, thus promoting the continuous deepening of industrialization. In order to reduce the increase of transaction costs caused by division of labor, industrial enterprises generally choose to gather their economic activities in cities, thus promoting the development of urbanization. Due to the economic benefits of urban agglomeration, the division of labor is further deepened, thus promoting the continuous improvement of industrialization level.

Third, the external manifestation of the coordinated development of industrialization and urbanization.

The development process of industrialization and urbanization is also the process of industrial structure transformation and the concentration of rural surplus labor force to non-agricultural industries and cities. The coordinated development of industrialization and urbanization means that the development of non-agricultural industries drives the rural labor force to concentrate in cities, and the development of cities further promotes the development of non-agricultural industries. However, the evolutionary relationship between industrialization and urbanization shows obvious stage characteristics, so the coordinated development of industrialization and urbanization shows different characteristics at different stages.

In the early stage of industrialization, industrialization is the leading factor, and industrialization is the driving force of urbanization. In the early stage of industrialization, the level of internal division of labor in manufacturing industry was low, and there were fewer kinds of products traded in the market, and fewer professional service personnel specialized in product trading. During this period, compared with agriculture and service industry, the manufacturing industry has a relatively high degree of specialization, a relatively high level of labor productivity, and a relatively large absorption capacity for labor and other production factors. Although its proportion in the national economy is lower than that of agriculture, its growth rate is relatively fast. The development of urbanization is based on the development of industrialization. The function of cities and towns is to provide a gathering place for the development of manufacturing industry and provide corresponding infrastructure such as transportation and communication. The number and types of products traded are relatively small. The development of cities and towns mainly depends on the expansion of industrial enterprises and the accumulation of population and capital attracted by reproduction, which is manifested in the expansion of urban scale and quantity, the expansion of urban extension and the transfer of rural surplus labor to cities.

In the middle stage of industrialization and urbanization, the characteristics of their interactive development are the most obvious. With the evolution of industrialization, the industrial division of labor gradually deepens and the number of intermediate products increases. On the one hand, it promotes the development of the means of production industry, on the other hand, the transaction cost between products increases, and the demand for professional intermediary and specialized service economy increases, which promotes the development of service economy and urbanization. The role of urbanization in promoting industrialization lies in reducing the production cost of enterprises by using infrastructure; Through face-to-face conversation and knowledge spillover effect, the transaction cost of enterprises is reduced; The division of labor in the service industry shows that the production of enterprises serves the life of the population and attracts the population into the city; With the expansion of population and market scope, the demand for industrial products increases, which provides conditions for industrial specialized production. The production of the means of production industry "capital excludes labor", which makes the ability of the industry to absorb labor force decrease with the deepening of industrialization; Service industry is a labor-intensive industry. With the increase of its proportion, it has gradually become the main industry to absorb labor. From the perspective of spatial transfer, the rural surplus labor force moved to cities quickly and steadily during this period, and the urbanization rate made a great leap.

In the mature stage of industrialization and urbanization, the role of industrialization began to fade, and urbanization gradually became the focus of economic development, which was embodied in the strengthening of service industry functions. The productivity of industrial labor increased, the level of specialization improved, the proportion of gross industrial output value in the total national economy decreased, and the industrial labor force began to experience negative growth or zero growth. With the deepening of the division of labor in service industry, the importance of life service industry is strengthened, and the demand of service industry for spatial accessibility makes the leading industry of urban development evolve from industry to service industry. Service industry and urbanization promote each other, and modern service industry and information industry have become the main industries to absorb labor. The gap between agricultural labor force and non-agricultural industries has narrowed, and the transfer of rural labor force to cities is very slow. The development of urbanization is mainly manifested in the improvement of quality.

refer to

Pu Jingqiu: Study on the Interactive Development of Industrialization and Urbanization in China [M]. Economic Science Press, 2003.

Huang Youguang, Yang Xiaokai: Specialization and Economic Organization-A New Classical Microeconomic Framework [M]. Economic Science Press, 1999.

;