Research On The Role Of Financial Development In Urbanization Of Northeast Area

Urbanization is the main trend of the world.And it is the driving force in promotingChina’s economic development. With the rapid development in economy, especially theimplement of the revitalization of northeast old industrial base strategy, the urbanizationlevel of Northeast region continues speed up in recent years. Liaoning Blue OceanEconomic Zone, Shenyang Economic Zone, Chang-Ji-Tu Pilot Zone and Harbin-Dalianhigh-speed railway zone have achieved sound performance in urbanization. Meanwhile,the finance development also has important practical significance to support theurbanization.This paper firstly describes the achievements of domestic and foreign scholars onthe relationship between urbanization and financial development, and makes a briefoverview on the theory of financial development and urbanization. Then analysis the rolethat financial development acts in supporting urbanization. Put forward that the financedevelopment can promote the urbanization by expanding the financial scale, improvingthe structure and efficiency of the financial market. With the development of finance, thegovernment can promote infrastructure construction and industrial structure, improve thecompetitiveness of SMEs. Furthermore push the industrialization and accelerate thespeed and scale of rural labor to secondary industry and tertiary industry. The supports offinance to the urbanization mainly reflect in providing funds for urban construction, theoptimization of industrial structure and the acceleration of the process of urbanization inrural areas. Combined with the nowadays urbanization levels and financial environmentof northeastern region, the article builds empirical analysis and model and evaluationIndicators, using data from2000to2012of Northeast role to analyze the function offinancial development to the urbanization process.Quantitative inspection results shows that, the financial development is an effectivemeans to promote the urbanization with the expanding of financial scale and theimprovement of the financial structure as well as the market efficiency in Northeastregion. The financial development plays an important positive role in promoting theurbanization process. Therefore, we can conclude that, deepening of the degree of financial development will significantly improve the level of urbanization and acceleratethe process of urbanization.Finally, on the base of learning foreign experience, the paper puts forward thecountermeasures and suggestions in the process of urbanization. It is critical for financialdevelopment to play full in promoting the people-oriented urbanization.