Abstract:In this paper, by using grey, the correlation among urban construction using land and the fixed assets, GDP and the degree of urbanization in 2001—2008 in Shandong province are analyzed. It is showed that city construction using land has the closest relation with the GDP. The correlation rate is 0.92 , then followed by the urbanization rate with the correlation rate as 0.88. Among three indicators, it has the lowest correlation with fixed assets investment as 0.70. It shows that economic development is the main driving force in the expansion of urban construction using land.