Study Of The Impact Of Financial Development On Urbanization In Anhui Province

Urbanization is a powerful engine of economic and social development.It is also a sign of social progress and the potential for expanding domestic demand.The development of urbanization has always been the focus of all parties concerned,so the study of urbanization is of great significance.In the process of urbanization,it is bound to be inseparable from the financial support.And finance is the core of the modern economy.The continuous expansion of financial size,the continuous optimization of the structure and the continuous improvement of financial efficiency can better achieve the function,such as the financing and factor optimization.So that it can promote the level of urbanization.Therefore,in the construction of urbanization,we must pay attention to the development of finance,so that finance can play a better role in the construction of urbanization.Anhui Province,as one of the provinces in the middle of China,it has been actively promoting the construction of urbanization.Since reform and opening up,the urbanization rate of Anhui Province has been greatly improved,from 12.62%in 1978 to 50.5%in 2015.Its urbanization is at a rapid rate.And the continuous improvement of financial development plays an important role in the process of urbanization in Anhui Province.However,we should also realize that the level of urbanization and the level of financial development in Anhui Province still have a certain gap with other developed provinces.Compared with the developed provinces,the urbanization level of Anhui Province is still to be improved and the level of financial development of Anhui Province is still to be enhanced.Therefore,this paper takes Anhui Province as the research object.The paper will analyze and study the influence of the financial development on urbanization in Anhui Province.And it will put forward some measures and suggestions on the basis of the research,so as to give full play to financial market financing and other functions to promote the urbanization construction,Which has certain practical value and significance for Anhui Province to continuously improve the level of financial development,improve the level of urbanization and realize the better development of economy and society in Anhui Province.This article is divided into five sections.The first part is introduction.Firstly,it is about the background of the study and the significance of the article.And then it introduces the domestic and international literature on the impact of financial development on urbanization.And then it introduces the content of this study and research methods.And finally it introduces innovations and shortcomings that exist in this paper.The second part is the theoretical foundation of the financial development and urbanization.This chapter firstly introduces the concept and main theory of financial development.Secondly,it introduces the concept of urbanization and its main theory.At the end of this chapter,it introduces the mechanism of financial development to urbanization.It mainly study the mechanism of financial development on the population urbanization,the industrial urbanization and the coordinated development between urban and rural.The third part is the analysis of the current situation on financial development and urbanization in Anhui Province.In this chapter,it firstly introduces the current situation of financial development in Anhui Province,mainly from the three aspects of financial scale,financial structure and financial efficiency of Anhui Province.And it puts forward the problems of financial development in Anhui Province compared with others.Secondly,it introduces current situation of urbanization from the aspects of population urbanization,industrial urbanization and the coordinated development between urban and rural.And it puts forward the problems of urbanization according to comparative analysis.The last part of this chapter analyzes the current situation of financial development supporting urbanization in Anhui Province,mainly from the aspects of supporting population urbanization,supporting industrial urbanization and the coordinated development between urban and rural.And based on the above analysis,it puts forward the problems that exists in the process of financial development supporting urbanization.The fourth part is the empirical research on the influence of financial development on urbanization in Anhui Province.This chapter mainly chooses the data of 16 cities in Anhui Province and establishes the panel data model to study the influences of financial scale,financial structure and financial efficiency on the population urbanization,industrial urbanization and the coordinated development between urban and rural in Anhui Province.This chapter firstly introduces selection of indicators and the source of the data.Secondly,we test the smoothness of the data.After the stability test of the data,the three models are determined by the F test and the Hausman test.Based on the empirical results,this paper analyzes the impact of financial development on urbanization in Anhui Province.The empirical results show that the coefficients of the impact of the financial scale on the three indicators of urbanization in Anhui Province are consistent with the theoretical expectation.However,in contrast,the financial scale of Anhui Province has the greatest effect on the coordinated development between urban and rural.The effect on population urbanization can be ranked as the second place and the effect on industrial urbanization is the smallest.The financial efficiency of Anhui Province has a weak effect on the improvement of the industrial urbanization,but it constrains the population urbanization and the coordinated development between urban and rural.Furthermore,it has a greater inhibitory effect on the coordinated development between urban and rural.The financial structure of Anhui Province has a weak effect on the improvement of the industrial urbanization,but the coefficients of influence on the population urbanization and the coordinated development between urban and rural do not pass the significant test.The fifth chapter is the conclusions and suggestions.In this chapter,it is firstly introduce the conclusions.Then based on the above analysis,some countermeasures and suggestions are put forward so as to give full play to the role of finance in promoting urbanization in Anhui Province and to improve the urbanization level of Anhui Province.