Linkage studies of China's urbanization and construction industry

Urbanization is the universal law in the process of all countries' economic and social development, construction industry is an important material production sector of the national economy, so linkage studies of urbanization and construction industry have great significance for the healthy development of economic and social. The paper uses co integration test, Granger causality test to establish VAR model, and analysis the dynamic relationship between urbanization and the construction industry with impulse response function and variance decomposition to solve the problem of how to measure the correlation structure between urbanization and the construction industry. Research shows that there is only one co integration relationship between urbanization and the construction industry, the construction industry does Granger cause urbanization but urbanization does not Granger cause the construction industry, and construction industry increasingly promotes urbanization but the promoting function of urbanization on construction industry is not obvious, the construction industry can be explained by the fluctuation of urbanization but urbanization cannot explain the construction industry's fluctuations.