Empirical Research On The Role Of Urbanization In Rural Financial Development

Abstract:In recent years, our country pay more and more attention to "three agriculture" problem in the important position of economic development, and the key of solving the problem of "agriculture, rural areas and farmers" is to promote rural urbanization process. The development of rural urbanization needed rural finance as a support, financial could fund for urbanization, promote the rapid development of urbanization, for this reason, this article has a in-depth research on the relationship between the rural financial development level and urbanization.Firstly, this article introduced and explained the rural finance system and the related theory of urbanization, clear theoretically the relationship between the rural financial development and urbanization as well as the interactive mechanism between the two, for the below theory foreshadowing. Next, this article carried on the detailed analysis of the rural financial development present situation, our country present situation of urbanization and rural financial support for urbanization present situation, to point out problems such as the current rural finance in supporting of the urbanization of the rural financial market disequilibrium between supply and demand of funds, peasant household loans difficult, not enough financial support. On this basis, the rural financial development in China to the empirical analysis of the effect of urbanization, the analysis results show that the rural finance efficiency and rural financial structure are negatively related with income urbanization, which means these two indicators have positively correlated relationship with urbanization, and the results are still remarkable after adding the control variables. Finally, on the premise of theoretical analysis and empirical analysis, support for rural financial development of urbanization in China put forward the constructive suggestions.