Study On The Financial Development Of County In Shandong Province Under The Background Of Urbanization

Urbanization refers to a process in which rural populations move into cities along with the advancement of industrialization and the development of social economy. County-scale urbanization is a process of urbanization construction based on county and town. County-scale financial development is important supporting force of economic development in the process of county-scale urbanization, but the existence of county-scale financial development problems slows down the development of economy, causes “blood lose” to counties, and restricts the further development of urbanization process. How to reduce the hazard of county-scale financial repression, accelerate the reform of county-scale financial system, make county-scale financial development better promote county-scale economic growth and drive the construction of urbanization has become experts and scholars’ research focus.At present, most scholars research financial development, economic growth and urbanization from national or regional perspective, but seldom involve county-scale perspective. In view of this, this paper takes Shandong Province as example and selects its 90 counties and cities as research targets to study the relations between county-scale financial development problems, county-scale financial development and economic growth, urbanization. First of all, Shandong Province’s county-scale economic development level and urbanization level are introduced. On this basis, a conclusion is reached, that is, county-scale economy holds an important position in the whole Shandong Province’s economy and county-scale urbanization level in this province is relatively low. Next, by taking county-scale loan-to-deposit ratio and county-scale bank distribution as the point of penetration, it analyzes the county-scale financial development condition in Shandong Province and finds out that counties with backward economic development have fewer types and less distribution of banks and more serious financial repression phenomenon, which in turn will impede the development of county-scale economy. In empirical research part, the paper makes use of panel data analysis method to study the relations between financial development level and economic growth level, urbanization in 90 counties and cities of Shandong Province. Results have shown that county-scale financial development level has significantly positive influence on county-scale economic growth and urbanization, and particularly, it has more influence on economic growth level. At last,according to the research findings, policy proposals for county-scale financial system to promote county-scale economic development and urbanization process are made.