Technological Innovation, Urbanization and Economic Growth: Interactive Mechanism and Empirical Test

Based on China's economic data from 1995 to 2015, this paper studies the dynamic relationship among technological innovation, urbanization and economic growth by using co-integration test, impulse response and variance decomposition with SVAR model. The study finds that a long-term equilibrium relationship exists among the three variables; technological innovation, economic growth and urbanization have formed a benign interaction mechanism; economic growth has a significant pulling effect on urbanization, while urbanization has a long-term lagging effect on economic growth; the impact of technological innovation on economic growth is greater than the impact of urbanization on economic growth.