The Studies On Finacial Backing To The Development Of Sichuan’s Industrialization And Urbanization Interactive

The interaction between industrialization and urbanization strategy, urban and rural development strategy are proposed at the tenth party conference of Sichuan Province.The development level of industrialization and urbanization is not only an important symbol to measure the degree of China’s modernization but also can reflect the level of economic development of a country or region. They are just like twin sisters because industrialization would undoubtedly bring about the development of urbanization and urbanization in turn promotes the progress of industrialization.Compared with the national average, the industrialization and urbanization level of Sichuan province still has a long way to go. The shortage of funds is one of the largest obstacles. Finance, as a core lifeline of the national economy, optimize the layout of production factors, integrate superior resources and plays a very important role in the economic and social development. Therefore, to do further researches about the relationship between industrialization and urbanization and financial development, and how finance provide adequate financial support to promote the industrialization and urbanization development have great practical significance in the modern era.The thesis chooses four indicators:industrialization rate IND (industrial added value/GDP), urbanization rate URB (urban population/total population), financial related rate FIR (financial institutions, deposit and loan balance/GDP) and per capita GDP, and adopt quantitative analysis to analyze the relationship between industrialization and urbanization and financial development by building the Panel Data Model.The results are as following:(1) the level of financial and economic development are positive correlated with the level of industrialization in Sichuan province. Financial development and economic growth have played a positive role in promoting the process of industrialization. The empirical results are consistent with the theory.(2) Financial development also promotes urbanization obviously. Both financial development and GDP per capita are positive correlated with urbanization, and in more than95%on average. The empirical results are consistent with the theory.(3)To industrialization and urbanization, economic development is more influential than the finance. However, financial development is a bigger promotion to industrialization than that of urbanization.From all above discussion, the thesis draws the following conclusion:(1)Push forward the construction of the Western financial centers unswervingly.(2)Promote the financial development of small and medium-sized cities quickly.(3)Establish a diversified investment and financial system;(4)Make a good use of financial institutions. To utilize and develop government Investment Company rationally;(5)Promote financial innovation actively;(6)Improve the rural financial service system.