Empirical Study On The Impact Of Financial Development On Urbanization In Hunan Province

With the development of China’s economy, the urbanization level has been greatly improved, in 2015, China’s urban population proportion of the total population reached 56.1%, the urbanization rate of Hunan province have been breakthroughs in the development of urbanization is the 50%. With Hunan province urbanization is speeding up, urban infrastructure construction and agricultural modernization require a lot of money, just rely on local and national finance has been unable to meet their funding needs. Financial development to better revitalize the capital, promote the rational use of funds, improve the efficiency of the use of funds, so as to provide urban construction funds so, study on the effect of financial development in Hunan Province on urbanization, find out the main factors affecting the development of urbanization in Hunan Province, the better for the development of the urbanization, has important significance.In this paper, the domestic and foreign scholars on the construction of financial development and urban literature were summarized, based on the study of the process of financial development, summarizes the concept of financial development, and the concept of urbanization and related theories are discussed. This paper describes the mechanism of financial development and urbanization interaction. Based on this analysis. The present situation of Hunan province urbanization and financial development. The empirical analysis, this article from the economic, population, life, ecological and other aspects of selection index, composition of urbanization index system, using entropy method to calculate the Hunan province urbanization comprehensive development level of financial development. The financial related rate, financial efficiency, financial structure three index, cointegration test for variables, and examine the relationship between financial development and urbanization, and using the method of the grey correlation of the impact of financial development on Urbanization Factors and influence degree The analysis of correlation.The empirical results show that in the long term, there is a cointegration relationship between Hunan province urbanization and financial development. Financial development of urbanization have a greater role in promoting the index of financial structure and financial related rate. On the basis of financial development to promote the urbanization construction suggestions.