This paper

with our time-series data as the samples since 1978

ana- lyzes quantitatively

by taking use of the regression model

the urbanization ef- fects of economic development and the economic effects of urbanization since China's reform and opening up. The analysis shows that from then

the interaction between economic development and urbanization registers as one kind of highly positive correlation promoting mutually. That is

economic development can pro- mote the process of urbanization

while raising the level of urbanization are sure to promote the economic development. On this basis

this paper has proposed the de- velopment strategy to speed up China's urbanization process.