An Empirical Study On Informal Finance In China And Its Impact On Urbanization

At present,urbanization has already become the major driving force of the development of the social economy in our country.Now,China is in a stage of rapid development urbanization,and we have made great achievements.However,urbanization needs support of funds.According to the National Development and Reform Commission,by 2020 China's urbanization funds will be more than 40 trillion Yuan.With such a large demand of capital,it is not enough only relying on the support of government and other traditional financing sources.If informal finance can play an important role in urbanization,the issue of underfunded urbanization will be addressed effectively.Based on the background of underfunded urbanization in our country,this paper studies the relationship between informal finance and urbanization.Firstly,it introduces the research background and significance,reviews the domestic and overseas relevant papers and articles,draws up the research content and the basic framework of this paper.Secondly,it defines the connotation of the informal finance and urbanization,and reviews the related basic theories about informal finance,urbanization and development economics.Thirdly,this paper analyses the informal finance's impact on urbanization theoretically,emphasized on describing the current situation of informal finance in our country,and uses the 0 value method to estimate the scale of informal finance;next it analyses the financing demand of urbanization and the relationship between informal finance and urbanization from the perspective of institutional change.Fourthly,this paper explores empirical study about the influence of informal finance on urbanization by using the analysis method of panel data,combining informal finance scale index with new-type urbanization index,and analyzing the relationship between informal finance and urbanization from the perspective of empirical study,which provides the data support to previous theoretical study.Finally,the previous results showed that informal finance plays the most important role in promoting the transfer of rural population to urban areas,followed by the role of promoting the upgrading of the industrial structure of the city,and the third is the role of urban employment.In order to serve urbanization better,this paper provided relevant suggestions based on the current situation of informal finance and urbanization in our country.