A Relationship Study Of Financial Development And Urbanization Of Sichuan Province

With the accelerating process of urbanization in Sichuan Province, in particular the establishment of the New Tianfu, urbanization has become the key projects in Sichuan, and the huge sums of money in the process of urbanization, a large number of infrastructure construction must exist demand, at the same time to achieve the industrialization of agriculture also requires a lot of financial backing, and rely solely on state financial allocations is not enough. Finance is no longer merely as a medium for the exchange of commodities, but has become the backbone of modern economic development, financial development has a pivotal position for economic growth. Socio-economic activities in the developed market economy conditions, showing the characteristics of highly monetized, securitized financing finance most important function is financing-worldwide, in order to achieve the smooth progress of the rational allocation of resources as well as socio-economic activities. Therefore, the study of the relationship of the financial development and the process of urbanization in Sichuan Province, to explore the financial development and urbanization intrinsic conduction mechanism, whether it is for the promotion of financial reform, or accelerate the urbanization process, has a very important practical significance.Firstly, in combing the scholars at home and abroad on the basis of financial development and urbanization research literature on the theory of financial development and urbanization theory are briefly elaborated, and the formation of the transmission mechanism of financial development and urbanization theory framework. Followed by quantitative analysis of the relationship between the Sichuan Province, financial development and urbanization, which is also the focus of this article, a certain one-sidedness of the Sichuan Province, the urbanization rate of the data are incomplete and only measure the level of urbanization in the proportion of residents of urban resident, This article considering the factors of population, economy, society, life, ecology, entropy method empowerment indicators, resulting in Sichuan comprehensive level of urbanization, financial development indicators scholars at home and abroad financial value added ratio is selected on the basis of financial related rate, the rate of savings into investment, financial structure ratio, and then use the cointegration test the relationship between financial development and urbanization, and cointegration equation to study the financial development and urbanization intrinsic conduction mechanism of the process.The structure of empirical studies show that long-term cointegration relationship exists between Sichuan Province, financial development and urbanization, financial development indicators, the largest role in promoting the process of urbanization is the financial structure, and financial scale and financial efficiency of Sichuan urbanization to promote the ability of the process is relatively weak. Urbanization on the role of financial development mainly in the urban social and cultural level and improved quality of life, provide a good external environment for financial development, economic development have a negative impact on financial development, that has not yet reached the economic development of Sichuan Province be able to finance the development of the degree of need, but the need for financial development priority to the development and promote economic growth.