A Study On Interactive Relationship Between Financial Development And Urbanization

Urbanization is not only the inevitable trend of social and economic development, but also an important symbol of social progress. Since the 1990 s, C hina’s reform and development in rural areas is facing many problems, especially the problem of "agriculture, rural areas and farmers". Urbanization has the vital significance in solving many problems in rural areas; expanding inner demand potential, benefitting the agglomeration economy, realizing the optimal allocation of resources, steadily and rapidly developing economics. However, the urbanization requires a lot of financial support, just relying on national finance is not enough. Financial institutions can provide financial support for urbanization.In order to know the relationship between financial development and urbanization in Northwest, this article from six parts to study on this issue: First of all, this paper analyzes the relevant literature about financial development and urbanization; Then this paper summarizes the theory about the development of the urbanization and financial development in system, lay a theoretical foundation for the further research; The third part mainly aims at analyzing the current situation of urbanization, the financial system to support the urbanization and financial supply and demand in the process of urbanization in Northwest; The fourth part is to collect the data of urbanization and financial in Northwestern for empirical analysis, using the method of canonical correlation analysis to the relationship between financial development and urbanization of the five northwestern provinces; And found that the urbanization development has brought a lot of money for the financial industry, led the Northwest financial prosperity, but financial investment is inefficient, the financial sector has not completely adapted to urbanization and has not promoted the urbanization advancement; For the problems in Northwest, the article gives the corresponding countermeasures and Suggestions, we should develop the financial industry, promote the development of urbanization quality, make financial development and urbanization promote to each other, and complement each other.