An Empirical Analysis of the Relationship Between Urbanization and Fiscal Policy --- Taking Jiangxi Province of China As an Example

Urbanization is still the direction of China's development in the next twenty years. The study of the relationship between fiscal policy and urbanization is of great value to the healthy promotion of urbanization. In this paper, through the establishment of vector autoregressive model, and analysis using the impulse response function and variance decomposition empirical dynamic correlation between the development of urbanization in Jiangxi province and that of fiscal policy, fiscal policy focus; at the same time, this thesis employs qualitative analysis and quantitative analysis, normative analysis and empirical analysis, combined with the reality of the development of urbanization in Jiangxi Province in order to analyze of the relationship between the development of urbanization in Jiangxi province and fiscal policy and the existing problems. The study found that there is a cointegration relationship between fiscal policy and urbanization. The impact of fiscal expenditure on Urbanization in Jiangxi is better than that in fiscal revenue. Finally, this paper also puts forward relevant policy.