Financial development, input of public finance and urbanization in China

Abstract

This paper studies the effects of financial development and input of public finance on urbanization in China. It shows that the input of public finance has an obvious influence on the urbanization, but the financial development does not in the short run, that in the long run there is a relationship of equilibrium among them and the effects of the efficiency of financial development and the input of public finance are obvious, and that the contribution of the financial development to the urbanization is relatively greater in the longer periods.