Study On The Effect Of Financial Development Supporting To Urbanization In Gansu Province

Urbanization can not only promote the realization for China to buildwell-off society, but also can effectively solve the problem of the dualeconomy. Finance is the core of modern economy and the “blood” ofmodern economy. Finance depends on the economy while nurturing theeconomy. Financial development is an important condition to supporturbanization, providing financial support for the construction of urbaninfrastructure, the transfer of rural surplus labor, and other aspects ofoptimizing industrial structure, promoting economic development theurbanization in cities and towns with important effects. Gansu is locatedin the northwest region of China with relatively slow economicdevelopment, huge development potential and space. Based on this,urbanization is an important part of a healthy social and economicdevelopment in Gansu. It gives full play to the financial markets tooptimize the allocation of resources, financial intermediation and otherfunctions, which will play an important role in the urbanizationconstruction in Gansu Province.This paper which supports the financial development effects ofurbanization as the focal point of theoretical analysis, analyzes the theoryof urbanization, the development of financial development and financialsupport for the effect of urbanization and studies the feasibility, realityand urgency of urbanization. On this basis, this paper analyzes thefinancial development in Gansu Province to support the process ofurbanization, present situation and further research directions, usingJohansen co-integration test, regression analysis, Granger causality testand other quantitative analysis methods for1978-2012years dynamicrelationship between the timing of data related to the development ofurbanization and financial development in Gansu empirical research. The results show that there is a long-term equilibrium relationship betweenthe development of urbanization and finance in Gansu Province. AndFinancial Development in Gansu Province in the development process ofurbanization is having the effect of support, financial developmentstructure and financial development efficient development of urbanizationis has a significant role in promoting.