The Impact Of Government Intervention In Finance On Urbanization

Urbanization is the inevitable choice of economic and social development.China has made great progress in urbanization in the past years.The promotion of urbanization depends on market mechanism in resource allocation.Government regulation plays an indispensable role in financial market due to the deficiencies of market.The process of urbanization in China is mainly driven by the government.Urbanization in developed countries is mostly carried out under the guidance of the market compared to China.Under the top-down official assessment mechanism in China,the government has a strong impetus to promote local economic growth.The financial revenue gained by government is difficult to meet the huge capital needs of infrastructure construction and public service.Local government has a strong incentive to compete for financial resources,and actively intervene in the financial market to conduct extensive intervention.Financial resources can effectively leverage other economic factors.Local governments' intervention of financial resources is an important factor to understand the development logic of urbanization in China.The financial resources allocation mechanism disturbed by the will of the government also affects the development of urbanization.Therefore,it is of great significance to analyze the impact of government intervention on urbanization for improving financial efficiency and promoting the sustainable development of urbanization.This paper studies the government behavior in the process of urbanization from the perspective of finance.It is mainly divided into the following parts: firstly,the urbanization theory and financial development related theory are reviewed,and the paper expounds the internal relationship between finance and urbanization,the motivation and characteristics of government intervention in finance;Then the paper analyzes the current situation of financial intervention policy,credit resource allocation and urbanization level.On the basis of analyzing the connotation of urbanization,the paper puts forward the research hypothesis.The paper hold the idea that infrastructure investment intensity,financial resource allocation efficiency and industrial structure the three middle transmission paths of government intervention affecting urbanization.The government's financial intervention influences the level of urbanization through the above three transmission mechanisms.After theoretical analysis,this paper expounds the sample and data sources,and empirically tests the above research hypothesis by constructing the intermediary effect model.In order to explore the impact of regional and policy heterogeneity on the regression results,this paper also divides the samples to conduct empirical tests.The impact of financial intervention policies on urbanization between three regions and different types of policies are not the same.Finally,this paper summarizes the main conclusions and a few countermeasures and suggestions.The research deficiencies and future improvement are summarized at the end of the paper.