Author(s)

Runhuan Liu

Corresponding Author

Runhuan Liu

ABSTRACT

After reviewing the existing literature, a reinterpretation of the mechanism of urbanization is proposed as follows: Along with optimizing the allocation of resources, various economic and social resources transfer to urban areas or gather to form new towns, thereby generating positive resource agglomeration effects with an ultimate objective of maximizing human welfare. Based on the new interpretation, this paper comprehensively examines the mechanism of China’s urbanization and discovers problems of resource misallocation in four major areas: human resources, social security resources, land resources, and housing resources. Finally, corresponding countermeasures, including suggestions on promoting migrant workers’ urban inclusion, improving social security provision, and enhancing land and housing utilization, are put forward.

KEYWORDS

Urbanization, resource misallocation, agglomeration effect