Abstract: This paper constructs a semi-parametric spatial lag model which considering regional economic space overflow and the relationship between industrial agglomeration and nonlinear urbanization, so as to investigate the synergistic impact of industry concentration and ownership structure on urbanization. The results show that the higher proportion of the state-owned output value can inhibit the process of regional urbanization significantly. With the deepening of industrial agglomeration, the positive impact of industrial clustering on promoting China’s urbanization will gradually wear off; at the same time, the ownership structure would undermine the positive impact of industry agglomeration on urbanization. The economic efficiency of industrial agglomeration in Shanghai, Guangdong Province and other developed areas currently is difficult to make up for the negative impact on urbanization caused by the overcrowding effect. Therefore, in order to speed up the process of the regional urbanization, each region has to not only further reform the state-owned enterprises, but also actively promote the development of local industrial agglomeration according to the local conditions.

Key words: industrial agglomeration; ownership; urbanization; semi-parametric spatial lag midel