Study On The Impact Evaluation Of Financial Supporting To Urbanization Development In Shanxi Province

Urbanization is a major trend in the contemporary world economic and socialdevelopment. The level of urbanization is becoming a vital sign which measure the level ofmodernization of the country or region. In recent years, Urbanization in Shanxi Province hasmade some achievements, but there still exist some problems, such as slow development, lowlevel, unbalanced development with each group. And Urbanization’s demand for financialcapital is more and more intense. Therefore, the study on the evaluation of financialsupporting has a very important significance in accelerating the process of urbanization inShanxi province.This thesis made the following main contents based on the theory analysis ofurbanization and finance: first, it was a quantitative measure on the level of financial supportin Shanxi province. This paper built an indicator system from four aspects, namely, the scaleof financial support, the structure of financial support, the efficiency of financial supportbased on the analysis of current financial development in Shanxi, and then used factoranalysis to evaluate the composite score of financial support scale, financial support structureand financial support efficiency of11cities in Shanxi province from2006to2012. Second, itwas a quantitative measure on the comprehensive level of urbanization in Shanxi province.This article built an indicator system from four aspects, namely, economic urbanization,population urbanization, social urbanization and environmental urbanization based on theanalysis of the status of urbanization development in Shanxi province, and then used factoranalysis to evaluate the composite score of the level of urbanization of11cities in Shanxiprovince from2006to2012. Third, it was the empirical analysis of Shanxi financial support effect on the urbanization. This paper selected the data of11cities Shanxi from2006to2012,and built an panel data econometric model to make empirical test of Shanxi financial supporteffect on the urbanization. The empirical results show that among the financial factor inpromoting the process of urbanization, financial scale played a leading role, while financialstructure and financial efficiency were relative low. There existed significant regionaldifference in the financial impact on urbanization in Shanxi province. Financial support forthe urbanization is not stable around the city which has not achieved the intended effect ofincreasing significantly. Finally, this paper raised the related policy and recommendationagainst the issues, in order to ensure sustainable development of Urbanization in ShanxiProvince.