Study On Relationship Of Finance And Urbanization In DongYing

Finance is the channels of social funds’accommodation. It is the booster and accelerator of modern economy. Financial development depends on the economic development and feedback the economic development. Since the reform and opening, the urbanization construction got high levels of development, the urbanization not only can effectively solve properly the problems of dual economy in our country, but also is a major force to promote the development of economy and play an important part of our economy. An important condition the development o to improve the level of urbanization is the financial support. Financial development plays an important role in the process of promoting urbanization. In order to make the urbanization development more perfectly, to make the quality of urbanization get better and better, so the research of financial development in promoting the improvement of the level of urbanization is worthy of our attention and important topics. It is important practical significance to make Dongying city sound and rapid economic development. In this paper, through theoretical research and empirical analysis on two aspects to discuss the important role of the financial development to promote urbanization level.This paper first respectively made a summary about the development of urbanization and the financial development of research status at home and abroad, then introduced the review of the relevant theories and between, we can make a conclusion that between urbanization level and the financial development is a relation of mutual influence. On the basis of the theory of accumulation, we can made the analysis and the summary respectively about present situation of urbanization development and the financial development and pointed out the problems existing in the process of financial development and urbanization development in Dongying. Dongying’s financial system is mainly composed of commercial Banks and other financial intermediaries. Banks, securities and insurance industry go hand in hand, they effectively promoted the pace of urbanization development of dongying, but the number of financial institutions, financial instruments, investment and financing channels is small and other issues also need to perfect place. The urbanization level of dongying in Shandong province is at a high level, but the construction of rural support should be strengthened, the empirical aspects of this paper were summarized the present development of the urbanization level and the finance in Dongying. On the basis of using the relevant data of the urbanization level and the financial development indicators from 1983 to 2013, We establish the VAR model and VEC model to do some relative research. As we can see from the empirical results in this paper, there is a certain correlation between financial development and urbanization construction, and in both the short and long term, financial development has a positive role in promoting the urbanization level. The three indicators of financial development to the improvement of urbanization level is financial scale, financial efficiency and financial structure, they have different effects on the urbanization rate, the financial structure has the greatest contribution to the development of urbanization.On the basis of theory and empirical analysis, we made a conclusion and put forward the related countermeasure and the suggestion. In the development of urbanization, the financial should play the positive role to promote the level of urbanization:to perfect the financial support to the development of agricultural modernization, to perfect the financial support to adjust the industrial structure, to improve the multi-level capital market system and the development of diversified financial institutions, to perfect the financial support to the construction of urban and rural ecological and so on to make the development of urbanization in the healthy and rapid way.