Co-integration and Causality Analysis of the Financial Development on Urbanization
- 10.2991/icsshe-15.2015.137How to use a DOI?
- financial development, urbanization, co-integration, VEC model, causality analysis
This paper examines how financial development affects level of urbanization in China. Using a co-integration test and VEC model through time series data from 1991 to 2012, it is pointed that there is a long-term equilibrium relationship between the financial development and the level of urbanization. Furthermore, the research presents that the financial development scale has positive effect on the level of urbanization in short term, but the financial development structure and the financial development efficiency have negative effects on the level of urbanization in short term. The results suggest that in order to significantly promote the level of urbanization, current financial reform in China should enlarge the financial development scale, optimize financial structures, strengthen governance structure of state-owned bank and accelerate market-oriented reforms of interest rates.
- © 2015, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Yuzhong Sun AU - Chuncheng Liu PY - 2015/12 DA - 2015/12 TI - Co-integration and Causality Analysis of the Financial Development on Urbanization BT - Proceedings of the 2015 International Conference on Social Science and Higher Education PB - Atlantis Press SP - 540 EP - 543 SN - 2352-5398 UR - https://doi.org/10.2991/icsshe-15.2015.137 DO - 10.2991/icsshe-15.2015.137 ID - Sun2015/12 ER -