A Study on the Interaction among Financial Development,Industrial Adjustment and Urbanization

This paper attempts to study the interactive relationship among financial development,industrial structure adjustment and urbanization in China.Based on the data from 1978 to 2018,this paper establishes a VAR model for empirical analysis.The results show that after the impulse response analysis and variance decomposition of the model,industrial structure adjustment and urbanization have a positive impact on financial development in the long run.Financial development and industrial structure adjustment do not play a positive role in the process of urbanization,and there is still room for further development.It is suggested that the state should strengthen the financial support for urbanization so that the two can develop in coordination.At the same time,we should adhere to the simultaneous development of industrial structure adjustment and urbanization to ensure the simultaneous development of financial scale and efficiency.