An Empirical Analysis on the Relationship Among Fiscal Expansion, Credit, and the New Urbanization

Hanjie WANG, Zhizhang WANG


At present, China’s new urbanization is in rapid development stage. Infrastructure construction and the construction of social medical security system need a lot of money. Thus, the financing problem becomes the bottleneck of the development of the new urbanization. Fiscal expenditure and credit is the main source of funds of the new urbanization. So, this paper uses the time series data of 1952-2012 to analyze the relationship among fiscal expansion, credit and the new urbanization. The result shows that there is a long-term and stable relationship among fiscal expansion, credit, and the new urbanization. In addition, fiscal expansion is the granger causality of the new urbanization, and the new urbanization is the granger causality of credit. It indicates that fiscal expansion has played a positive role on the development of the new urbanization, while credit is still in demand following.


The new urbanization; Fiscal expansion; Credit

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