Study Of Financial Development Influence Urbanization In China

Since the founding of new China, "local style" urbanization exploration took its way since the reform and opening up and it had great result. 2014 China’s urbanization level has reached 54.77%, but the urbanization level is still lower than the world average. And in a period of rapid growth of China’s urbanization,population urbanization is lower than urbanization of land. The problems of “Substance important than people” have become increasingly prominent. In addition,the urbanization differences between regions are also increasingly prominent. Currently, the global economy towards recovery. China’s economy has entered a new stage of transformation,we can no longer develop in the way of consuming resources and getting investment as the main direction of development.And make a change to expand domestic demand, and realizating the industrial transfer to bring the whole process of urbanization and economic development.From the perspective of the theory to explain the internal logic of financial development and urbanization.Urbanization process itself including the population of urbanization and industrialization and both can interact each other. Population urbanization is the core, and the industry urbanization is the economic foundation. As the core of the financial economy, Financial institutions would mobilize savings, promote capital formation and improve the efficiency of capital allocation and to improve agricultural productivity.It can also promote the remaining products and the generation of surplus labor. Thereby contributing to the degree of separation of people and their comprehensive ability population. Financial institutions meet the surplus product and surplus rural labor, and provide residents with a stable job by supporting the development of SMEs. While providing support for the process of urbanization, mainly reflecting in the increase in capital accumulation as the urbanization of conduct, promoting technological innovation.Thus it has an important influence on the process of urbanization. Financial support the urban’s infrastructure and improving the ecological environment living standards, to further enhance the attractiveness of the town. Therefore, from a financial point of view to study its impact on the development of urbanization is important.Due to the large area of China,so there is a large geographical gap,and a gap between economic development from ancient times. And this gap is likely a important one that can influence the impact between financial development and urbanization. Studies have shown that as the rich services,financial products itself has the "threshold" impact. Like Matthe,resulting in more rapid urbanization rate, the higher the financial development of the region, on the contrary, the lower the slower areas. In view of this, in this paper, through factor analysis, spatial econometric and regression analysis on China’s 30 provinces and cities level of financial development classification. And analyzed by classifying the financial impact of different levels of development in the region of urbanization. Finally we proposed policy proposals to strengthen the financial support the process of China’s urbanization after empirical test.