The Research On The Financial Support Policy Of The Urbanization Process

Urbanization is the greatest potential to the historical mission of our countrymodernization and to expend domestic demand and it is meaningful to promotenational economic growth and to raise the people’s living standards. Finance is thecore of the economic society and its intrinsic factors that includes sector structure,credit policy and regulation model have influences on the urbanization. So it hasimportant theoretical value and practical significance to identify the supportedcontent of finance and its historical performs and effects and related executivemechanism in the process of the urbanization.This study follows two main lines: First, from a theoretical and empiricalanalysis to illustrate and validate that financial development on the deepening ofurbanization can play a greater role in promoting; Secondly, after clearing theprinciple of a clear financial effects of urbanization and its positive role inpromoting urbanization, focus on the impact of financial policies on financialdevelopment, and study the problems of current financial development. Finally,booting from monetary policy to support financial development, put forward specificproposals. In this framework,this paper discusses the mutual promotion relationshipbetween urbanization and finance by discussing the relationship between urbanizationand economic development and the relationship between finance development andeconomic development, which fills in a gap that hitherto existed in the direct studythe relationship between urbanization and finance development of the foreignliteratures. The related domestic literatures are rich, so this paper focuses on theempirical analysis of the relationship in this field. And then the content ofurbanization is divided into four parts. They are infrastructural investment, reasonableindustrial structure, improved social inclusion and environment-friendly. Afterintroducing the theories of the urbanization and the positive action between financesupport and urbanization, this paper pays attention to the positive functions that thefinance stimulus the urbanization. In specific, there are three aspects in terms offinance supports of infrastructural investment, agriculture industrialization and thetransformation and upgrading of the second and third industries and resident statustransformation of farmers. And then set the infrastructural investment as an example,by estimating the investment growth space in the future to give a rough estimate of the funding gap. According to the current situation that the historical gradual progressof the model of financing of the capital construction and the support to theinfrastructural investment by the transitional financial support system is insufficient,this paper suggests that financial innovation is an important way to speed up theurbanization. Based on the proper disposal of risk, the essence of the finance servicethe entity is made the best of by combining the financial instruments and projects.Besides, this paper proves that the improvement of the financial intermediarydevelopment index and the efficiency of the financial system have positive function tothe urbanization by econometric model. At last, the weakness of the financial supportpolicy is discussed and suggestions are put forward from the point of top level design.