Abstract：Urbanization is a concept and phenomenon which attracts attentions of multi discipline. A proper comprehension of this concept usually transends the concept itself, and influences directly on the social policies and practice about urbanization. Based on current studies concerning about urbanization, the thesis dwelles on the profound meaning of urbanization from the viewpoint of the New Institutional Economics, and discusses its comprehensive connotation from the viewpoint of dynamic development. A deep grasp of both aspects is very important for thorough recognizing of China's underurbanization and for re orientation of urbanization in 21st century.
