Research Of Financial Support In Chinese Progress Of Urbanization

The urbanization is an important way to change the dual economic structure and construct the well-off society. Financing and investment are the primary factors that affect the urbanization; the financial system has become the important capital source of cities construction. How to enlarge the credit support to the cities construction and advance urbanization is the problem that current financial reform urgently faces.This thesis expatiate the internal logic of financial support of the urbanization process from a theoretical perspective. The key of urbanization promotion is to weaken the urban-rural dual structure and financial repression is important cause of urban-rural dual structure our country. So financial development and increase financial supports are important means to promote urban-rural dual structure of weakening, thereby promote the process of urbanization. Financial system promotes the process of urbanization by three channels as follows: to support the city infrastructure, to support enterprise development in the economic urbanization and to support the rural population transfer to citizen.By operating the Johansen examination and Granger test based on the non-structured VAR model, discover that the medium and long-term loans from banks and the urbanization advancement has the long-term balanced relations and the causal relation, proved that financial support is playing an extremely important role in the urbanization. On this foundation analyze the barrier still existed when the financial system backing urbanization, and point out policy suggestion to enlarge financial backing to saved the urbanization advancement.