| Abstract | Based on the most prominent economic characteristic of Northeast China, this paper analyzes the causes of regional economic downturn from the perspective of economic structure. This paper finds that the traditional industrial structure and the high proportion of state-owned restrict regional economic growth. Meanwhile, based on the background of system transformation in Northeast China, this paper analyzes urbanization in the same research framework, finds that the effect of economic structure on economic growth has the nonlinear threshold characteristic which is influenced by urbanization. Using the prefecture-level city panel data (2003-2013) of three northeast provinces, empirical analyses show that when the urbanization rate is greater than the threshold value, the effects of industrial structure and ownership structure on economic growth will be worse. Under the inevitable development trend of urbanization, lowering the proportion of state-owned, especially lowering the proportion of state-owned investment, and speeding up the adjustment and upgrade of industrial structure, especially developing the second industry, are important to promote the economic growth in Northeast China. |