Research Of The Effects Of Financial Development And Industrial Structure Upgrade On Urbanization

Urbanization is the only way to balance urban and rural development,and is an important measure to promote rapid economic development.Finance is the core of modern economy,which can effectively allocate resources,and contribute to avoiding the risks in economic activities.The upgrading of the industrial structure,is an important indicator to measure the level of economic development of a country or region.Shandong province has made great achievements in various aspects,but in comparison,it still lags behind Guangdong Province,Jiangsu Province,and there is a certain gap between Shandong province and other provinces.Now is the new era of economic development in Shandong Province.The research of relationship between financial development and urbanization,and the relationship between upgrading of industrial structure and urbanization,is of very important value.Based on the above background,this paper selects the impact on the urbanization from financial development and the upgrading of the industrial structure in Shandong province as the research object.Firstly the related theories,the present situation and the relationship of the three are studied.This paper collects a large number of relevant data and information,and let data to speak,to support this point of view.In addition,this article also use the cointegration test and vector autoregression model,from the province level,to study the correlation.Studies have shown that financial development has both the direct and indirect effects on the urbanization process.The effects include infrastructure construction,agricultural modernization,financial aspects of radiation effects and industrial structure upgrading.Optimization of industrial structure upgrading through factor mobility,employment structure,industrial accumulation and transfer to promote urbanization.According to the preceding theoretical analysis and empirical analysis results,aiming at the existing problems in the development in Shandong province,this paper proposes to improve the urbanization level in Shandong province government countermeasures and suggestions.From the research we can see: in Shandong Province,there is not only a long-term stable equilibrium relationship,but also a causal relationship between the urbanization and the financial development and between the urbanization and the upgrading of the industrial structure.That is to say,with the analysis tool of measurement,using empirical research methods,this paper illustrates the problem above.In Shandong Province,with the financial scale,the financial structure and financial efficiency to measure financial development,with the coefficient of industrial structure and employment structure coefficient to measure the upgrading of the industrial structure of the case,there is a positive correlation between the five sub indicators and the urbanization rate,that is to say,under normal circumstances,the larger the financial scale is,the higher level of urbanization;The higher the financial efficiency is,the higher level of urbanization;The higher the financial structure and employment structure optimization level are,the higher level of urbanization.Urbanization course will in turn promote the development of finance and industrial structure.But the ISR1 coefficient is negative,the upgrading of the industrial structure has hindered the improvement of the level of urbanization,which is obviously not reasonable.This may be caused by the unreasonable industrial structure of Shandong province,and the output does not play its due role in the urbanization.Also,three sub indicators of financial development,the short-term fluctuations of financial scale,financial structure and financial efficiency,will cause short-term fluctuations in urbanization;similarly,as a measure of the upgrading of the industrial structure index,namely the short-term fluctuation coefficient of industrial structure and employment structure coefficient,can also cause short-term fluctuations in the level of urbanization;there is deviation from the long-term equilibrium variables influence other aspects.Based on the above research,this paper gives the urbanization policy recommendations that improve financial support on the urbanization and the upgrading of industrial structure;improve the support on industrial from the upgrading of industrial structure.