Research Of Finical Support In The Process Of Rural Urbanization

Economic and social development is the inevitable trend of urbanization and isan important symbol of a country and regional modernization’s level. Finance, as thecore of the economy, has been affecting the process of our country’s urbanization.From the following dimensions, how to promote the development of the third industry,how to promote agricultural industrialization and how to support the urban and ruralinfrastructure construction, financial affects the process of urbanization of our country.The financial sector gains the funds of the urban and rural construction throughfinancing. And it supports the development of the urban and rural’s economic byoptimizing the allocation of the capital. How to promote the development of the urbanand rural by using the reasonable financial mechanism effectively is the importantcontent of China’s financial reform.This paper analyses the internal logic of the urbanization and the financialsupport. The development of the urbanization must satisfy three conditions: First, theremaining products produced by the development of rural economy can be used tosupport the development of urban economy. Secondly, the urban economy, the secondand third industry economy, developes with the support of rural remaining products.From the aspects of population, economy and society, this paper elaborated how thefinancial institutions to support the urbanization process.Because of many variables, this article established the index system of urbanization.By the entropy weight method, the weight of every secondary variable is calculated.By operating the Johansen examination based on the non-structured VAR model, itdiscovers that the index system of urbanization has a positive co-integrationrelationship with the financial support indicators. Finally, this paper gives someSuggestions of how to strengthen financial support in urbanization.