Research On The Impact Of Financial Development On The Process Of Urbanization In Hebei

In 2016,the government of Hebei province issued the construction plan of the new urbanization and urban and rural demonstration area of Hebei province(2016-2020).In the course of the coordinated development of Hebei,Tianjin and Hebei Province in the next 5 years,the timetable and road map were drawn up for the construction of new urbanization and urban and rural integration demonstration area,and the urbanization became more and more important.As a traditional large agricultural province,the level of urbanization in Hebei has been lower than the national average level.It is imperative to raise the level of urbanization in Hebei.However,the huge demand for capital in the construction of urbanization is not only rely on the government’s only hand,but also the intangible hand of the financial market to optimize the allocation of social resources at the same time.Based on this,we select Hebei Province as the research object of this article.The paper first combs the literature at home and abroad,collate the related theories of financial development and the theory of urbanization,and explains in detail how financial development affects urbanization through the way,which indicates that financial development is an indispensable factor in the process of urbanization,and the development of finance also restricts the development of urbanization in a certain degree.Then the quantitative analysis is carried out and divided into two steps: firstly,according to the related theories of urbanization,the indexes are selected from four levels of population,society,economy and ecology,and the comprehensive urbanization rate of Hebei province is calculated by the analytic hierarchy process.Secondly,the financial scale,financial structure and financial efficiency are respectively.The three level selects 4 indicators as explanatory variables,establishes VEC model,and empirically studies the impact of Hebei’s financial development on urbanization.At the result,we find that the financial development of Hebei have affect the level of urbanization both in the long run and in the short run.The influence degree of the different elements in the financial development is different to the urbanization,the most important is the financial structure,the most outstanding is the financial efficiency,which supports the present analysis conclusion of this article from the empirical aspect.In the process of urbanization,Hebei province does have the image of financial restraint,and the financial development is not perfect.Finally,based on the research results of the full text,some suggestions are put forward: first,continue to increase financial supply,and balance the investment according to the specific conditions of urbanization;second,enrich the direct financing business of the financial market;third,pay more attention to improving the conversion rate of financial investment and accelerate the flow of funds.