Research On Of Financial Support On China’s New Urbanization: Theory And Evidence

New urbanization is not only the key to promote economic development and transition, but also an important goal of China’s economic development in the future years. With comprehensively promotion of new urbanization, its demand for funds is greater than that of traditional urbanization,so traditional government fiscal financing will unable to meet the huge demand for funds resulting from the construction of new urbanization. Therefore,it increasingly necessary to play the role of financial industry to support the new urbanization.Domestic researches on financial support of new urbanization are more restricted in description of the new urbanization and financial support, or separately study the relationship of land finance and financial support and the new urbanization and financing countermeasures. There is a few research on scientific measure of the level of new urbanization and comparison on effect of financial support and other financing on the new new urbanization. Therefore, as a starting point, this paper integrately analyzes the financial support of the new urbanization from angles of theoretical and empirical analysis.Based on previous studies and combined with scientific meaning of the new urbanization of with purpose of the research, this paper uses entropy method to reconstruct a new urbanization indicator, analyzes mechanism and channels of financial support acting on new urbanization and the impact factors of financial support effects on the new urbanization.At last,the paper builds a theoretical framework of financial support for the new urbanization, which is the theoretical basis and the basis for subsequent empirical analysis.This paper preliminarily analyzes current situation and problems of the China’s financial support and new urbanization development by using space-time method. The result shows that there has been steady growth of the current level of China’s new urbanization over time, but it also appears on the spatial distribution of gathering trend and a big difference between the regions. The interesting thing is that, space exploration analysis finds that there is a certain correlation of the spatial distribution of financial resources in the provinces and the spatial distribution of new urbanization,population urbanization;At last,the paper also discusses other possible causes of these problems.To further investigate the financial support effect for the new urbanization and compare the new urbanization effect of land finance support, the paper uses the static and dynamic panel data econometric model to empirically test the short-term and long-term effects of financial support for the new urbanization. In order to analyze empirical result in detail, the paper does specific empirical process from different angles including the whole country,different times and areas, and also have the robust test of the estimate results of all model, and finally the empirical results were compared and interpreted. Static panel model estimation results find that,land finances show weak support effect for the new urbanization in the short term,which exists structural changes in time and space, and strength of its support effect on new urbanization is much less than that of the efficiency of financial support for new urbanization; Financial support scale for the new urbanization is negative;The short-term influence of financial structure and insurance support for the new urbanization is not significant, while the effect of them on the new urbanization has large differences in the eastern, central and western regions.To further explore the long-term effects of the financial support for the new urbanization,and take into account the sustainable dynamic effects of new urbanization, and try to overcome the possible endogeneity problem, this paper further uses dynamic panel data model to do the empirical test.The result shows that the long-term effects of land finance on new urbanization are no longer significant;The long-term effects of size of financial support for new urbanization is still negative, but that of the efficiency of the financial support, financial support structure, insurance support for new urbanization are significantly positive;And insurance support plays an indirect role the new urbanization through intermediary role of financial support scale.Thus, with the new urbanization development, in order to solve the major issues on "where is money form" in urbanization construction, this paper,combined theoretical and empirical research findings, thinks our government should fully learn the experience of financial support for urbanization in major developed countries.We can explore the policy of financial support for new urbanization in line with China’s national conditions, the details are as follows:construction of financial support policies in terms of regional differences, improving the efficiency of financial support, financial support to rural urbanization, optimizing the structure of financial support.Finally,we also points out the limitations of this study and future prospects.