Research On The Interaction Between Financialintermediary Development And Urbanization

Urbanization is China’s current economic growth potential power, is the important strategic task to realize the economic development way transformation and to focus on solving the problem of "agriculture, rural areas and farmers". In the process of urbanization, the financial element is one of the most important factor in promoting urbanization. Thus using hunan province as an example to study the interactive relationship of the financial intermediary development and urbanization has strong practical significance.According to the actual situation of hunan province, this paper expounds the research background and significance. Then, analyzes the related concepts and theories about the development of financial intermediaries and the urbanization, along with the the interactive mechanism between the development of financial intermediaries and urbanization. Then, systematically analyzes the banking industry and the current situation of urbanization in hunan province, points out the problems existing in the process of urbanization of hunan. On this basis, this paper does the empirical analysis about interactive relationship of the financial intermediary development and urbanization, based on the relative panel data of13cities in hunan province, using P-VAR model, from population urbanization economy urbanization and society urbanization,which shows:(1) There is long-term equilibrium relationship between financial intermediary development and urbanization. Financial intermediaries development level will powerfully promote the improvement of urbanization level.(2) There is two-way causality between the development of financial intermediaries and the urbanization level. The improvement of the financial industry development level will promote the continuous improvement of urbanization level, and vice versa. Finally, in view of the empirical conclusion, from the financial support of the advancement of urbanization and urbanization development for the financial industry provides a good opportunity of development from two aspects, puts forward Suggestions on finance and the coordinated development of urbanization.